r/stocks
photonics selloff is not warranted?
Author says photonics selloff is unwarranted, citing strong hyperscaler demand for optical interconnects in AI datacenters, notably Google.
- Photonics and optical interconnects are seeing immediate, strong demand from hyperscalers for AI multi-node training and serving.
- Recent deliveries of advanced switches and co-packaged optics show performance improvements are accelerating, contradicting delay reports.
Semianalysis wrote how 800V DC and photonics are getting pushed back few years but it doesn't look like it's true.
Switches (spectrum) are already being delivered (https://www.taipeitimes.com/News/biz/archives/2026/06/04/2003858481) and performance improvements are insane https://macroplane.com/blog/co-packaged-optics.
every hyperscaler and neocloud needs optics to interconnect for multi-node training or serving large models. If you don't have fast interconnection it means you have to keep moving your customers around to win the "tetris".
Afaik google uses all optics across their datacenters so they can assemble virtual clusters that are interconnected without interrupting/moving workloads around.
What are your thoughts?
Broad market macro related pullback is dragging everything down. There are deals everywhere. I’d accumulate on the way down as much as you reasonably can. When the macro relaxes, the coiled spring on good stocks releases and they pop.
yeah I think I am thinking a bit more about semianalysis post, it doesn't align with what we are seeing from multiple other sources.
Regarding 800VDC nvidia also pushed back on it, saying that the ramp up is happening.
I think the question isn't whether Optics is useful question it's whether CPO technology is currently scalable with yield that doesn't destroy margins. The other question is whether any Neo clouds are willing to be the first mover in placing large-scale orders.
I could not be more bullish on the semiconductor supply chain, photonics, and AI-adjacent hardware in general. This broad market pullback is a huge accumulation opportunity. The AI infrastructure buildout is going to be a years long process, so the longer this current macro headwind lasts, the more I’ll be able to accumulate before things relax and run hard again. The money is there. These are good companies.
Relax - you have 4-10x gains in some of the names past 1Y that even a 20-25% haircut in 1 week still gives you 3-8x gains. There isn't a stock that goes up each and every day, not even the biggest of winners.
Now if you are buying and holding more for that 1 week timeframe, rather than that 1Y+ timeframe, that's on you. Anything can happen in the short term. But in the long term, can't keep growing revenue and profits down forever.
1000% run and a 20% pullback... Everything's on fire!
Well of course I entered at 1000%
If you say it enough times, the market will listen.
true 😃
Strong BUY. AAOI
Watching
Everything in the AI supply chain risks getting hit if faith in the profitability in the massive data center build out falters
what photonic stocks you got? I’m in COHR, LITE, CIEN, NOK, MRVL, and CSCO.
got some very cheap SIVE +400% up, SOI. Reduced the footprint a bit in photonics to diversity into INTC, AMD and WOLF (conflicted about it, great tech but jesus christ their financials 😄).
Maybe it would make sense to double down on optical switches for now, they are needed and probably wouldn't matter if it's pluggable module or CPO (need to research it a bit more)