Let's look at why Wall Street treats memory like a premium commodity but treats light like magic:
Memory chips store data but they have to send that data to the GPU using copper wires & electrons. If the data takes too long to get from the memory bank to the GPU, that USD 40,000 chip sits idle.
$Lumentum(LITE)$ & $COHERENT(COHR)$ use photons. Silicon photonics convert digital data into beams of light, shooting it through fibre optic cables directly into the heart of the processor cluster.
There is no friction, no heat waste & you can thread multiple streams of light through a single fibre lane simultaneously.
Memory is like a fuel tank. If you can't move the fuel at the speed of light, the tank size doesn't matter.
That is why Light wins.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- blinky·08-11TOPElectronic bottleneck is real, but ramp and yield are the real stock drivers here. LITE and COHR can stay premium only if execution matches the physics, no?1Report