Bank of America bullish on optical network stocks, driven by AI data center demand

LootboxPhobia · 2026-03-09T22:37:16+00:00

Bank of America is optimistic about optical network stocks, believing that supply and demand shortages will be beneficial. Companies like Marvell Technology and Lumentum Holdings are expected to be the main beneficiaries. They emphasize that shortened design cycles and enhanced differentiation capabilities are driving factors, and other companies such as Nvidia and Broadcom will also benefit.

LootboxPhobia

2026-03-09 22:37:16

Abstract generation in progress

Investing.com - Bank of America remains optimistic about multiple fiber optic network stocks on Monday, citing the sector’s unprecedented demand and supply tightness as long-term positive factors.

The firm highlights Marvell Technology (NASDAQ: MRVL) as a major beneficiary, due to its strong digital signal processor market share during the industry’s transition from 800G to 1.6T technology. Bank of America notes that shorter design cycles and enhanced differentiation are additional drivers.

Lumentum Holdings (NASDAQ: LITE) is considered a key supplier in the component field, leading in electro-absorption modulated lasers and continuous wave lasers, especially in the area of integrated optical devices. The firm points out that prolonged delivery cycles for capacity expansion are worsening supply constraints.

According to the report, Coherent (NYSE: COHR) benefits from its indium phosphide supply advantage, helping to expand its share in transceivers and integrated optical devices.

Bank of America states that Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Macom Technology Solutions (NASDAQ: MTSI) will also benefit from the upward trend across the entire optical network value chain.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.