Sold Out Until 2028! - The NEXT AI Bottleneck Nobody Is Talking About - I'm Going All-In These 3

I believe the next major bottleneck in the AI infrastructure boom is already taking shape. Yet, it remains largely overlooked by the retail investment community. Please watch the first four minutes without skipping. I believe you will find the research and evidence extremely valuable. There is no denying that GPUs, memory chips, electricity and data center capacity remain critical bottlenecks but optical connectivity is rapidly emerging as another major bottleneck because processors become useless if they cannot exchange information quickly enough. Latest earnings calls confirm that laser demand is exceeding supply. Manufacturers say capacity is fully absorbed. Customers are searching for suppliers and shortages could continue into 2028 and beyond. As a clusters expand to hundred of thousands of accelerators, connections travel with bandwidth, distance, and power consumption. Data must increasingly travel as light, creating demand for optical transceivers, photonic components, and specialized laser chips. Trend force estimate that a optical transceiver market will reach 26 billion by the end of 2026, identifying component shortages as the obstacle to expanding capacity. Research from light counting reports that shipments of optical transceivers rated at 400G or above exceeded 60 million units in 2025 and could approach 100 million in 2026. Pressure may intensify as AI networks move toward near packaged and co-ackaged optics, bringing optical technology closer to processors. In this video, I will explain why laser chips could become AI's next critical shortage and which investments offer the strongest exposure before the market recognizes it. Before moving on, please consider subscribing and liking the video if you find this information interesting. Also note, I am not a certified financial analyst and this video is for information and entertainment purposes only. Please do your own due diligence before making any investment decision. Now, let's get to the main point. First stock on the list is Lmentum Holdings. At current price, the stock might look expensive, but earnings growth and industry outlook justifies premium valuation. Lmentum is one of the clearest beneficiaries of the optical networking bottleneck developing across AI data centers. The company manufactures electro absorption modulated lasers or EMLs and continuous wave lasers used in high-speed optical connections. These components help move enormous amount of data between GPUs, servers, and computing clusters. The bullish case is already visible in the numbers. Momentum delivered excelating growth throughout fiscal 2026 with revenue improving both sequentially and yearover-year for four consecutive quarters. Growth also strengthened across both operating segments, showing that momentum is not dependent on one product category. The most important development is pricing power. Demand for EML and continuous wave lasers is exceeding available industry supply, allowing momentum to raise prices. Management admitted that even the company's ability to increase prices for continuous wave lasers exceeded expectations. That combination of higher volumes, stronger pricing, and favorable product mix produced a major expansion in fourth quarter gross margin. Management also believes there is still some room to run on gross margin, suggesting that profitability could continue improving as additional capacity comes online and premium products represent a larger portion of sales. Analysts expect fiscal 2027 revenue to increase approximately 108% while earnings per share could grow around 149%. Based on those forecast, Lmentum trades at roughly 42 times forward earnings. That multiple appears high in isolation but becomes more reasonable when compared with the company's expected growth rate, expanding margins and strategic importance within AI infrastructure. The main risk is that the stock has already experienced a strong rally and slowdown in hyperscaler spending, weaker pricing or manufacturing problems could produce substantial volatility. My view is that momentum represents a compelling optical infrastructure opportunity. I would avoid purchasing the entire position following a sharp rally. Instead, I would gradually accumulate shares during pullbacks, allowing volatility to create a better average entry price. Second is Coherent Corporation. Coherent is becoming one of the most important suppliers behind the AI data center buildout. The company provides optical transceivers, lasers, and photonic components that allow GPUs, servers, and entire computing clusters to exchange enormous amounts of data at high speed. Its latest results show that this opportunity is already translating into exceptional growth. Fiscal fourth quarter revenue reached 2.05 billion, increasing 34% year-over-year. Non-GAAP earnings reached 1.74 per share, while gross margins improved to 40.2. The most important number was data center and communications revenue, which surged 59% and now represents 79% of total sales. Coherent is no longer simply a diversified photonix manufacturer with some AI exposure. AI connectivity has become its primary business. Management's guidance strengthens the thesis further. Coherent expects first quarter fiscal 2027 revenue to reach as much as 2.4 billion representing another major sequential increase. The company is also working with Nvidia on advanced lasers and optical systems, expanding manufacturing capacity in Texas and preparing to ship co- package optics products during the second half of 2026. The challenge is valuation after rising approximately 200% over the past year. Coherent trades near 35 times forward earnings. However, that multiple falls dropped 23 times fiscal 2028 earnings and 17 times fiscal 2029 earnings. Analysts expect earnings to grow approximately 64% in 2027 and 51% in 2028. This is therefore a battle between extraordinary growth and limited valuation protection. Any slowdown in hyperscaler spending, weaker margins or manufacturing delays could cause a sharp correction. My final verdict is a buy. Coherent is positioned at the center of AI's optical connectivity upgrade, but I would build the position gradually. I would initiate a smaller allocation now and reserve additional capital for pullbacks along the company's strong growth to work while reducing the risk of chasing the stock after its enormous recent rally. Third, I would prefer to play Photonix bottleneck trade through an ETF. The Corgi lithography and semiconductor photonix ETF, ticker symbol EUV, provides targeted exposure to what could become the next major bottleneck in AI infrastructure. The optical links connecting thousands of processors. A single GPU cannot train a frontier AI model alone. Large AI systems require hundred or thousands of accelerators to exchange data almost instantly. Copper works across short distances but loses signal quality and consumes increasing amounts of power as clusters expand. This makes optical transceivers, lasers and silicon photonics increasingly essential. EUV provide diversified exposure to this transition. Approximately 29% of its portfolio is invested in optics and interconnect companies including Corning Lummentum Sienna Coherent Credo and Marvel. Around 39% is allocated to semiconductor manufacturing and equipment leaders such as TSMC, ASML, Applied Materials, Lamb Research and Kla. The remaining holdings cover metrology, materials and sensing technologies. The demand signals are powerful. Research from light counting estimates that a cluster optics market expanded from 16.5 billion in 2025 to 26 billion in 2026. Coherent's data center and communication revenue grew 41% while Lumen's quarterly revenue increased 90%. Importantly, Coherent identified production capacity not weak demand as the main constraint. EUV also awards memory stocks and Chinese optical module suppliers that could prove valuable if investments rotates from memory towards optics or proposed American restrictions benefit western suppliers. The fund charges a.35% expense ratio consistent with industry trend. However, EUV is young, actively managed and volatile. Optics represent only around onethird of its portfolio while export restrictions, semiconductor spending cycles and technological changes create additional risks. Overall, EUV offers a compelling picks and shovels investment in AI's emerging optical bottleneck without requiring investors to identify one winning supplier.