Dec. 4 at 12:00 AM
$LITE Just listened to the LITE CEO interview at the UBS AI Conference.
Key Points:
LITE sees AI-driven optical demand running far ahead of expectations, with no signs of slowing through at least 2027. It is aggressively scaling manufacturing—especially in EMLs and indium phosphide—yet still expects industry-wide supply shortages for several years. Transceivers remain the weakest segment; LITE plans to cap that business around
$1B in revenue and focus on margin improvement.
The strongest growth drivers are CPO and OCS. CPO is already shipping, with a major revenue ramp expected in 2H 2026 as more customers adopt it. OCS demand is exceptionally strong but limited by LITE's ability to manufacture; revenue is expected to climb to
$100M this year. Traditional telecom components are also benefiting from hyperscaler networking and the shift toward more distributed data-center architectures.
Overall, demand across AI-related optical segments remains extremely robust.
