Feb 27, 2026: From Fiber Optics Bust to AI Optics Boom: The $700 Billion Optics Opportunity

February 27, 2026: Co-Packaged Optics

Generative AI is getting very demanding.It's become extremely power-hungry, and that's pushing the physical limits of what today's highest-performing chips are even capable of.One potential solution is co-packaged optics, which involves integrating fiber-optic transmitters directly into the chip. It's a great way to avoid much of the heat and signal degradation that traditionally comes from moving data across inefficient copper wires.Overall, that improves computing performance and uses less power. Which is a big win for this entire sector!But there are also significant costs associated with this new advanced packaging technology. Will the hyperscalers be willing to foot the bill, as the pace of their data center buildouts now approaches light speed?On Friday's show, I was joined by 24/7 Wall Street's Eric Bleeker to discuss the opportunity for co-packaged optics.We described why Lumentum has doubled in price during just the past two months and why Applied Optoelectronics is another stock that should be on your investing radar.⚠️ Not financial advice. Do your own research. These stocks have run significantly—understand the risks before investing.#optics #semiconductors #AI #datacenter #NVIDIA #AppliedOptoelectronics #Lumentum #copackagedoptics #AIinfrastructure #chipstocks #investing #stockmarket #7investing #247WallStreet #EricBleeker #advancedpackaging #hyperscalers #Amazon #Google #AIboom #techstocks #stockpicks