COHR: Explosion in 800G/1.6T Demand and transition into a US networking leader

Before reading this report, please read our series of reports on Optics.

LITE: At the Center of the Optical Communications Revolution

GOOG’s Optical Edge: OCS, Gemini 3, Model Progress, and the Coming Storage Crunch

Two Key Beneficiaries: Why We Think 3D Torus Architecture is Critical to ASIC

New Optical Opportunities Resulting from Changes in Emerging Models such as O1 and O3

Following our previous note analyzing Optics and LITE, LITE shares rallied nearly 50% at their peak. We remain convinced that Optics sector offers significant alpha. COHR is currently at a critical inflection point driven by surging AI data center demand. The company has successfully overcome initial supply chain bottlenecks and is ramping internal capacity (specifically InP) to meet robust demand in 800G and the upcoming 1.6T optical transceivers, based on our supply chain check.