FN

JPM is bullish on optical demand and capacity, with FN following COHR at approximately 14x CY28, supported by Nvidia/AWS-HPC ramps.

F1Q and F2Q revenue/EPS are expected to be above Street estimates, and gross margin should trough in F1Q then recover.

Meetings at ECOC reinforced a positive view on optical, with the company being a favored name.

CIEN/LITE/FN: Wolfe comes away from ECOC very bullish optical; Meta backbone plans highlight huge long-haul capacity ramp

Wolfe says meetings at ECOC reinforced its positive view on optical, with CIEN, LITE and FN its favorite names. Most notably, META said AI bandwidth growth is forcing a major backbone build, with long-haul infrastructure moving from ~48 fiber pairs toward t...

The company is positioned to absorb incremental demand if a ban on new optical transceivers is implemented.

MS had a good note out mid day explaining the push and pull saying COHR is the clearest scaled beneficiary given its vertical integration, with AAOI and FN also positioned to absorb incremental demand, while LITE should benefit from tighter EML supply but f...

Rosenblatt argues AI optical demand remains materially ahead of supply, with Indium Phosphide (InP) laser capacity expected to grow ~12x from 2025-2030 yet still potentially undersupplied by ~50% exiting the decade as NVIDIA-driven CPO ramps accelerate. The...

Optical/networking checks remain strong into C1Q26 with demand outstripping supply and lead times extending, driven by AI capex and increasing mix toward higher-cost long-reach optics.

The company is expected to have a 2–4% beat.

LITE/AAOI/COHR/FN/VIAV/ANET: Needham Sees Strong Optical Demand; Raises PTs, Positive Print Setup

The company flagged demand exceeding capacity with HPC ramping and incremental upside from new builds, indicating strong market demand.

The company was upgraded to Overweight with a price target raised to $537 from $499, citing the strongest revenue upside potential in CY26 across its coverage.

The analyst pointed to the early-stage transition to 1.6T transceivers at NVIDIA and expected strong double-digit growth in industry pluggables demand, particularly from new customer CIEN.

Fabrinet is well positioned to capture incremental share in the HCP/Triumph business, supporting the rating change.

Barclays upgraded Fabrinet to Overweight and lifted its price target to $537 from $499, citing what the firm sees as the strongest revenue upside potential in CY26 across its coverage. The analyst points to the early-stage transition to 1.6T transceivers at...