Is it too late to buy the "Nvidia of Networking"?
Lumentum (LITE) and Fabrinet (FN) have been on an absolute tear, with Lumentum up nearly 600% in the last year. Today, we break down why the AI data center build-out is shifting toward optical and silicon photonics—and which of these two companies is the better long-term play for your portfolio.
In this video, we cover:
-- The Supply Chain: How Lumentum (the IDM) and Fabrinet (the contract manufacturer) work together.
-- Financial Deep Dive: Why Lumentum’s operating margins are exploding (up 1,700 basis points!).
-- Future Catalysts: The massive OCS (Optical Circuit Switch) orders coming in late 2026.
-- Our Verdict: Why we are personally leaning toward one of these for our "starter positions".
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Chapters:00:00 — AI Networking: The Next 600% Run?01:38 — Why Lumentum is "The Nvidia of Networking"02:00 — Lumentum vs. Fabrinet: The Supply Chain Secret02:30 — The Hardware: Transceivers & Wafers explained03:10 — LITE Earnings: 1,700 Basis Point Margin Jump!04:00 — The Power of Operating Leverage05:10 — Huge 2026/2027 Catalysts (OCS & CPO)06:45 — Fabrinet Deep Dive: A Broader Play?08:45 — Telecom vs. Industrial Laser segments11:00 — Stock Performance Recap12:20 — Our Portfolio Strategy for 2026
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Affiliate links that are sprinkled in throughout this video. If something catches your eye and you decide to buy it, we might earn a little coffee money. Thanks for helping us (Kasey) fuel our caffeine addiction!
Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
#Semiconductors #AI #Lumentum #Fabrinet #Investing #TechStocks #SiliconPhotonics #StockMarket2026 #chipstockinvestor
Nick and Kasey own shares of Lumentum and Coherent
