Optical stocks stage a comeback following Anthropic’s IPO filing and some other good news Lumentum Holdings led the S&P 500’s gainers on Monday as optical stocks started to stage a recovery from the previous week’s declines. The company’s stock was up 8.2% at the close on Monday, while shares of fellow optical connectivity maker Coherent finished up 5.8%. Shares of Ciena also climbed 4.9% on Monday.
Evercore ISI analyst Amit Daryanani pointed to “renewed interest” in the optical sector following last week’s selloff. Many investors had also likely been waiting for artificial-intelligence startup Anthropic to release its S-1 filing for its initial public offering before piling back into the trade, he said. Why humanoid robots are so hard to mass-produce Play video: Why humanoid robots are so hard to mass-produce Anthropic filed for its IPO on Monday and its financials generally offered a lift to chip stocks.
Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I would like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time. **See more:**Anthropic just put out its IPO filing.
Here’s everything you need to know. Meanwhile, earnings results in the AI sector so far look “relatively healthy from a fundamental perspective,” he said, and with Meta Platforms’ announcement of an equity raise and SpaceX’s commitment to $40 billion in financing for chips and other AI hardware, investors got a sign of “ongoing durability” in the AI trade on Monday. Daryanani also pointed to expectations for the Federal Communications Commission to limit imports of optical transceivers from foreign suppliers early next year.
The decision “would effectively remove Chinese suppliers from the U.S. market” for next-generation 3.2T optical transceivers, he said. That would be “notable” given that China makes about two-thirds of these components, Daryanani said, citing an expert. While that would provide a challenge to AI deployment, any restrictions on China would in turn benefit U.S. manufacturers and allied suppliers, Daryanani said.
Additionally, news out of Asia over the weekend pointing to a potential slowdown in supply growth for Indium phosphide, or InP, a semiconductor material, was another key driver on Monday, he said. That would indicate Chinese suppliers are having challenges ramping up enough capacity of InP that can meet current speed requirements, according to Daryanani. The traditional optics cycle typically lasts five years, he said, but AI has led to “near yearly increases in lane speeds,” referring to the rate at which data is traveling.
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