Tower Semiconductor is identified as a leading silicon photonic foundry collaborating with Nvidia on co-packaged optics.
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Why Nvidia Just Bet $4B On Photonics
Mar 15, 2026
The creator identifies a critical 'copper wall' bottleneck in AI data center connectivity, arguing that silicon photonics is the necessary technological shift to overcome physical limitations. He highlights the transition from electrical signals to light-based data transmission as a major investment opportunity, specifically pointing to Applied Optoelectronics as a key player.
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AXT is noted for its dominant market share in indium phosphide substrates used in laser production.
Ciena is identified as a key player in fiber optics for connecting large-scale data center campuses.
Coherent is a vertically integrated leader in the photonics space, benefiting from massive Nvidia investment and S&P 500 inclusion.
Lumentum is a critical laser supplier for AI data centers, recently bolstered by a $2 billion investment from Nvidia.
Applied Optoelectronics is highlighted as a top pick in the photonics space, which the creator believes is currently mispriced by the market.
Nvidia is identified as the primary driver of the AI infrastructure shift, with its scaling requirements creating the need for photonics.