Mar. 9 at 12:46 PM
Bank of America turned bullish on several optical networking stocks, citing multi-year tailwinds from surging demand and tight supply across the sector.
The bank highlighted Marvell Technology as a key beneficiary due to its strong market share in digital signal processors as the industry transitions from 800G to 1.6T optical technology, supported by shorter design cycles and increasing differentiation.
Lumentum Holdings was identified as a major component supplier thanks to its leadership in electro-absorption modulated lasers and continuous-wave lasers, particularly for co-packaged optics, with long capacity expansion timelines contributing to supply constraints. Coherent was also noted for its advantage in indium phosphide supply, helping expand its position in transceivers and co-packaged optics.
Bank of America added that Nvidia, Broadcom, and Macom Technology Solutions are also well positioned to benefit from growth across the optical networking value chain.
$MRVL $LITE $COHR $BAC