−17.3%
since Oct 9
The idea
Copper runs out of room as AI data centers scale, so moving data with light becomes the next thing everyone has to keep buying. I own the whole path a beam of light takes: the lasers and components, the firms that build and assemble the hardware, the chips pulling optics closer to the processor, the networking systems, and the test equipment behind all of it, weighted toward whoever earns the most from optics today, with a small cash buffer. I'd rethink this if copper interconnects keep pace longer than expected or AI buildouts slow.
What it owns
- These companies design and manufacture the chips that move data optically within and between AI systems, sitting at the core of how clusters connect. · Broadcom Inc.It designs the switch chips and custom silicon at the center of large AI clusters and is advancing co-packaged optics where lasers sit next to the processor., Marvell TechnologyIt sells the signal-processing chips that sit inside most high-speed optical transceivers and custom AI processors for cluster networking., Credo TechnologyIt makes electrical cables that extend copper's reach in AI racks and is developing optical signal-processing chips as links move to light., NVIDIA CorporationIt designs the AI systems creating demand for optical networking and is launching switches with integrated optics for data center clusters., Astera LabsIt designs chips that move data cleanly between processors and memory in AI servers and is building products for optical interconnects., Taiwan SemiconductorIt manufactures chips for most companies in this basket and is developing silicon photonics packaging that integrates optical components into processors.31%
- These companies make the lasers, transceivers and fiber that convert electrical signals to light and carry data through AI data centers. · Coherent Corp.It makes lasers and transceivers that convert electrical signals into light inside AI data centers and is a primary supplier of these components., Lumentum HoldingsIt manufactures the laser chips inside high-speed optical transceivers that connect AI systems and scales with cloud company optical demand., MACOM Technology SolutionsIt manufactures analog chips and lasers that drive optical signals inside data center modules and is growing its data center revenue faster than other segments., Corning IncorporatedIt makes optical fiber and cable that carries light through data centers, and AI clusters use far more of it per rack than traditional installations., Applied OptoelectronicsIt is a smaller transceiver maker that manufactures its own lasers domestically and is pursuing large cloud company orders in optical connectivity.26%
- These companies assemble and build the optical modules, networking hardware and servers that tie AI clusters together at scale. · FabrinetIt assembles optical modules for major AI server and networking companies and operates near full capacity as data centers expand., Celestica Inc.It builds networking switches and AI server hardware for major cloud companies and scales with their data center network buildouts., Amphenol CorporationIt manufactures connectors, cables and fiber assemblies that connect AI racks together and is growing its data center fiber product share., Jabil Inc.It builds data center hardware including optical and networking gear for cloud and equipment companies and is growing AI data center revenue.19%
- These companies sell the switches and long-distance optical systems that link AI data centers and connect clusters internally. · Ciena CorporationIt provides optical systems that link data centers over long distances and is expanding sales inside data centers as clusters grow., Arista NetworksIt sells Ethernet switches that connect AI clusters, and each port requires an optical transceiver as cloud companies build faster networks.9%
- These companies provide the tools engineers use to design and verify high-speed optical links as they scale to support AI workloads. · Keysight TechnologiesIt provides test equipment that engineers use to design and verify high-speed optical links as data center speeds push to eight hundred gigabits and beyond., Viavi SolutionsIt sells test equipment for optical networks and the facilities building them, scaling with the optical infrastructure buildout in data centers.5%
- Cash10%