Serenity: AI Data Center InP Laser Supply Gap Exceeds Storage Chips

Lumentum CEO Michael Hurlston warned that the supply chain for indium phosphide (InP) lasers aimed at AI data centers faces a more severe supply gap than that of storage chips. Even with Lumentum's five InP wafer fabs, product shipments may still fall more than 30% below customer demand, indicating that the expansion of AI infrastructure is encountering bottlenecks in optical communication components. Currently, the supply pressure is primarily concentrated in the EML (electro-absorption modulated laser) sector, and the shortage of InP lasers may continue to spread. Serenity is optimistic about the investment opportunities in the bottleneck of the optical communication laser supply chain, focusing on companies such as Applied Optoelectronics (AAOI), Sivers Semiconductors (SIVE), Lumentum (LITE), and Coherent (COHR). As capital expenditures for AI data centers continue to rise, the undervalued infrastructure segments such as optical modules and lasers are undergoing repricing, and the InP laser supply bottleneck may become a key limiting factor for the expansion of AI computing power.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.