## Detailed walkthrough
### [00:00](https://www.bilibili.com/video/BV15kJo6zEZn?t=0s) Market Repricing and the Hunt for Quality AI Opportunities
The recent volatility across the stock market has triggered a widespread reassessment of valuations across the artificial intelligence sector. While some investors fear this marks the start of a broader downturn, the hosts emphasize that not all AI companies face the same underlying financial reality. The market has been especially punishing toward companies overly reliant on corporate debt, particularly as rising bond yields and elevated interest rates squeeze capital-intensive operators. However, tucked beneath the surface of the broad-selloff sits a collection of well-capitalized, cash-flow-producing AI businesses that are currently trading at substantial discounts.
Neil acknowledges the market pain with some self-deprecating humor, quipping about the state of his own investments: “I'm doing much better than my portfolio, I'll tell you that much.” Despite the severe pressure on high-growth tech over recent trading sessions, he steps forward with his first high-conviction pick: Nebius. While Neil admits that Nebius does not generate positive free cash flow at present, he insists it remains a top-tier operation that he has covered closely and personally owns in his portfolio.
- The broader market sell-off has disproportionately crushed unprofitable, debt-heavy AI companies sensitive to rising interest rates and bond yields.
- Quality businesses with rock-solid balance sheets and essential infrastructure roles are being swept up in the general panic, creating attractive entry valuations.
---
[01:07](https://www.bilibili.com/video/BV15kJo6zEZn?t=67s) Nebius: European Pedigree, Explosive Growth, and Smart Capacity Pricing
Nebius operates in what the market often terms the "neocloud" space, though management explicitly rejects that label, positioning the business instead as a specialized "AI cloud" or next-generation hyperscaler. The entire peer group—including rivals like CoreWeave—along with broader infrastructure providers such as Oracle, has come under heavy selling pressure. Investors are wrestling with deep anxieties regarding whether the massive capital expenditure on AI will generate sufficient return on investment, while punishing companies that must take on mountains of debt to fund their physical build-outs. Yet Neil points out that Nebius maintains a far healthier profile than peers like CoreWeave, which have taken on vastly higher debt loads.
Nebius carries an elite pedigree. Its core engineering and executive teams originally built and ran Yandex (frequently referred to as the "Google of Russia") before divesting and setting up Nebius as an independent entity headquartered in Amsterdam. This gives the company an entrenched foothold across Europe, complemented by rapid expansions in the United States, the Middle East, and rumored development across Asia. While a headline valuation approaching $50 billion looks steep against its trailing numbers, the revenue trajectory is extraordinarily steep: climbing from $1.3 billion over the trailing twelve months to an estimated $3.3 billion by the end of the current fiscal year, approaching $12.2 billion in the next fiscal year, and surpassing $23 billion by fiscal 2028. Management has even hinted in recent executive interviews that the company could eventually reach $100 billion in annual revenue around 2030.
Crucially, Nebius is outmaneuvering its competition on contract pricing. Instead of locking up 100% of its data center power and GPU supply in low-margin, multi-year fixed contracts through 2027, Nebius has intentionally held back capacity. Megawatt and GPU compute prices continue to climb, allowing Nebius to rent out short-term, three-month blocks at premium rates. This opportunistic pricing model is driving immediate margin expansion and self-funding capacity expansion without forcing the company to issue expensive debt or dilute equity in an unfriendly rate environment. As Neil summarizes: “Nebius, in my opinion, is still best in class at what they do.”
subgraph Competitors ["Standard NeoCloud Model"]
C1["Long-Term Take-or-Pay Contracts"] --> C2["100% Capacity Locked Through 2027"]
C2 --> C3["Fixed Low Margins + Heavy Debt to Build"]
end
subgraph NebiusModel ["Nebius Hybrid Strategy"]
N1["Anchor Tier: Base Contracts (Meta, Microsoft)"] --> N2["Secures Base Capital & High Utilization"]
N3["Reserved Capacity: Unallocated Megawatts"] --> N4["Short-Term (3-Month) Spot Leases"]
N4 --> N5["Premium Pricing & Surging Gross Margins"]
N2 & N5 --> N6["Internal Cash Flow Funds Expansion (Less Debt)"]
end
```
- **Trailing 12-Month Revenue:** $1.3 billion.
- **FY Year-End Target:** Over $3.3 billion.
- **Next Fiscal Year Projection:** Approximately $12.2 billion.
- **Fiscal 2028 Estimate:** In excess of $23 billion.
- **Long-term Management Target:** Up to $100 billion in revenue by roughly 2030.
- **Strategic Anchor Clients:** Tier-1 tech giants including Microsoft and Meta.
---
[05:58](https://www.bilibili.com/video/BV15kJo6zEZn?t=358s) Overcoming the "Copper Wall": Lumentum and the Optical Interconnect Revolution
Turning to a business that directly solves one of AI's hardest physical engineering bottlenecks, the discussion shifts to Lumentum Holdings. As frontier AI models scale to trillions of parameters, massive clusters containing tens of thousands of GPUs must pass unfathomable quantities of data back and forth. For decades, compute clusters relied on traditional copper wiring to move electrical signals between processors. However, copper has run directly into a physical barrier known across the semiconductor industry as the "copper wall." Forcing high-frequency data across copper cables generates punishing electrical resistance, throwing off massive amounts of heat, dragging down cluster latency, and burning unacceptable levels of electrical power.
The only viable industry solution is the wholesale transition from copper cables to optical interconnects. Optical systems use specialized transceivers and photonics laser chips to convert electrical signals into pulses of light, routing that data at lightning speed through fiber-optic lines. Moving data via light allows AI hyperscale clusters to scale compute capacity dramatically while simultaneously cutting power draw and mitigating thermal stress.
```mermaid
flowchart LR
accTitle: Copper Wall vs Optical Interconnect
accDescr: Diagram illustrating the failure of traditional copper wiring under AI workloads versus the speed and efficiency of optical interconnects.
subgraph Legacy ["The Copper Wall Bottleneck"]
A["Electrical Signal"] --> B["Traditional Copper Cabling"]
B --> C["High Electrical Resistance"]
C --> D["Severe Heat, High Power, Thermal Throttling"]
end
subgraph Optical ["Lumentum Optical Interconnect"]
E["Electrical Data"] --> F["Photonic Laser Chips & Transceivers"]
F --> G["Light Pulses in Fiber Optic Cables"]
G --> H["Speed-of-Light Data Transfer, Low Power & Cool Run"]
end
```
Lumentum sits at the core of this transformation as a B2B hardware and laser specialist. While the company maintains an industrial technology wing that sells 3D sensing components and high-precision lasers used to cut sheet metal or weld electric vehicle batteries, its cloud and networking unit is driving explosive growth. The company supplies three critical tiers of customers: hyperscalers building AI mega-clusters (Alphabet, Microsoft, and Amazon), traditional telecommunication giants, and original equipment manufacturers (OEMs).
The demand for Lumentum’s components is vastly outstripping industry supply. In its most recent fourth-quarter results, net revenue jumped over 100% year-over-year. In a candid interview with Bloomberg Television, CEO Michael Hurlston highlighted the staggering scale of the supply deficit, noting that Lumentum is currently unable to fulfill roughly 70% of customer demand for its core AI product lines. Furthermore, around 30% of its order backlog for alternative optical components is committed all the way through 2028. Because standing up and qualifying a new semiconductor laser fabrication facility requires years of capital investment and technical validation, Lumentum enjoys an exceptional competitive moat against fast-following rivals. Highlighting its critical standing in hardware roadmaps, Nvidia has backed Lumentum with a $2 billion strategic purchase commitment to support its next-generation platform rollouts.
- Traditional copper cabling has hit physical limits due to electrical resistance, thermal throttling, and unsustainable energy consumption under trillion-parameter workloads.
- Lumentum's photonics chips convert server electrical signals into light beams, enabling low-power, high-speed data transfer across optical fiber.
- **Q4 Net Revenue Growth:** Surged over 100% year-over-year.
- **Supply Deficit:** CEO Michael Hurlston stated Lumentum cannot meet roughly 70% of customer demand for its primary AI hardware lines.
- **Backlog Horizon:** Approximately 30% of alternative component order backlogs are locked down through 2028.
- **Nvidia Partnership:** Secured a $2 billion strategic purchase commitment from Nvidia to guarantee optical component supply.
虽然随着美股整体 AI 概念股的回调，Lumentum 的股价出现了一定程度的休整，且因底层制造业务的资本机制导致净利润增速存在周期性波动，但其坚实的基本面依然格外引人注目。目前公司订单积压严重，产能缺口高达 70%，根本无法满足客户如潮水般的订单。正如主讲人总结道：“And so this essentially is aiming to replace the standard motherboard copper traces with light wave conduits. What this means is that Lumentum is looking to expand its addressable market to the internal chip-to-chip architecture.” 伴随英伟达的深度注资与背书，Lumentum 在整个 AI 算力堆叠的产业链条中卡住了极具防御性的身位。
从财务基本面与盈利指引来看，博通的管理层已向市场给出了极具穿透力的远景目标：预计到 2028 财年，公司每股收益（EPS）将达到 30 美元；目前其股价维持在 340 美元左右，基于 2028 年的盈利目标，现行估值倍数依然具备充足的安全边际。更为亮眼的是其业务拆分数据，仅 AI 业务板块的营收预计就将在明年翻倍至 115 亿美元，后年将再度翻倍突破 230 亿美元大关。与尚未盈利的初创企业截然不同，博通每年能稳健斩获数百亿美元的充沛自由现金流。即便市场担忧其存在循环融资或过度依赖 Anthropic 和 OpenAI 这类初创客户商业化不及预期的系统性风险，但拥有 Meta 和 Google 等超大规模现金奶牛客户托底，博通的发展确定性依旧极高。主讲人指出：“In this market, I view this as a favorable risk reward pick,” 目前博通的前瞻市盈率（Forward P/E）仅在 20 至 21 倍左右，属于性价比极其突出的高质量蓝筹资产。
```mermaid
flowchart TD
accTitle: Broadcom Custom ASIC Moat
accDescr: Hyperscalers partner with Broadcom to co-design custom ASICs and diversify away from Nvidia dependence.
subgraph Hyperscalers ["云计算巨头与大模型梯队"]
A["Meta"]
B["Google (TPU)"]
C["OpenAI / Anthropic"]
end
subgraph Solution ["核心交付与壁垒"]
D["Broadcom 定制化 ASIC 协力设计平台"]
E["软硬件协同网络与高毛利 IP 矩阵"]
end
面对 AI 集群跳脱铜缆、走向共封装光学（Co-Packaged Optics, CPO）与近封装光学（Near-Packaged Optics, NPO）的代际拐点，Coherent 凭借 Photon Link 模块化平台走在行业最前沿。目前制约其数据中心业务营收放量的瓶颈并非后段组装或检测，而是其自主磷化铟激光器的原生产能。过去一年其产能已同比飙升 80%，并计划在未来数月内实现翻倍，随后继续翻倍扩产。在行业从 800G 向 1.6Tb 光网络演进的关键节点，常规模块因功耗过高随时面临集群过热宕机风险，必须依赖 Coherent 的磷化铟调制器进行功耗抑制。主讲人着重强调了其先发布局优势：“Management has said that they plan to start recognizing meaningful revenue from this business within the next quarters that would place them broadly ahead of the industry curve.”
[1:07] Neil: Nebius, in my opinion, is still best in class at what they do.
Original transcript
[0:00] Well, we're in a time where it seems like the market is repricing a lot of AI stocks. And while that may or may not be a longer term trend, it's certainly the case that not all AI stocks are created equal. In a previous video, we talked about the ways in which the market is repricing some of the businesses that are most reliant on corporate debt that are under pressure as bond yields and interest rates are rising but there is still a treasure trove of... well capitalized, profitable, cash flow producing, AI businesses. that might actually be trading a little bit more of a discount right now after the recent route in the market. So Neil and I are going to be talking about four AI stocks that we think are quality buys. in this era. *Mario's Death* Neil, good to see you. How are you doing today? I'm doing much better than my portfolio, I'll tell you that much. Although that's not that difficult, I guess, after the last couple of days in the stock market. But Yeah, we'll talk about some good businesses, although my first pick does not generate any free cash flow as of right now. But I still view this as a As a quality business, it's a name I've been covering for quite a while. I own it. And that's Nebus. So I know. I know what people say. Oh, High risk. Right? Because it's It's in the NeoCloud space, although NABUs themselves do not view the company as a NeoCloud company, they view it as a AI cloud or next-gen hyperscaler. But okay, everybody can come out with their own definition. But the Nebius... alongside all the other new clouds out there have been hit quite a lot. We've talked about it yesterday, actually, CoreWeave Oracle. They've been dragging down actually the space. So of course, Nebius being in the exact same industry gets dragged down as well because of the fears of We're still the same fears of maybe overspending in AI, what's the return on investment? And second of all, all of these companies that still need to grow quite a lot but already take on quite a lot of that although core with way more than debuts but they're definitely not profitable. as of right now. And so that's why you're seeing these companies take a hit. Nebus, in my opinion, is... still best in class at what they do. For those that don't know, Nebius, the same engineering team, management team, was previously in charge of Yandex, which was the so-called Google of Russia, that to divest. And they created that company a couple of years ago, headquarters in Amsterdam. So they have a huge presence in Europe, which is in my opinion, is a very, very big advantage to them, but they also have a big advantage a big exposure in the United States, in the Middle East. And I think there are some rumors that they're going to grow even more in Asia. But Nevis, as of right now, on paper, it seems like it's super expensive. Why is this company worth close to $50 billion, barely generating any revenue as of right now? which is true. They're going to go from last 12 months revenue, $1.3 billion, to over $3.3 billion the end of this fiscal year, to then close to $12.2 billion, next fiscal year, although I do think that number can be much bigger, and then over 23 billion dollars in fiscal 28. So it's definitely a company that is still expected to grow super quickly. Now that's great. But what about profitability? Because again the build out costs a lot of money Well, the thing that we know right now in the market is that the price of GPUs, the price of megawatts keeps going up. And Nebus has done something very smart, which is something that a lot of their competitors have not done. is that they've taken, yes, some big contracts with Microsoft, with Meta. Those are usually very low margin contracts, but this allows them to move much quicker. and raise capital at a, let's say, cheaper price. This also means that they are ready for what is coming right now. they can rent out megawatts at a higher price. which also means that they don't have to be sold out. A lot of companies that say were sold out for 27, Nebu said we could have been sold out for 27 but we decided not to because we know that we can price at a premium. Prices have been increasing if certain companies want to have only three months of allocation, We'll charge them a little bit more. which means that our margin profile suddenly improves quite a lot. which of course helps the company built faster and doesn't need to raise more capital, especially not in this rate environment. So We're looking here at the company that, in my opinion, is best in class, continues to grow quite quickly. You'll see the margin profile of the company actually improve. Over time, the fears here across the board are a bit overblown, but I understand. I understand the fears as of right now, because we're talking about... super big numbers, high growth rates, for companies that are
[5:00] are just, let's say, just starting off. But I do want to put Nebis here back back on the list because we are looking at a company that could, and that's according to management, not myself, could potentially generate 100 billion dollars in revenue in the not too distant future. I'm not saying this, although I think it's going to happen. It is part of the executive team that have said it, I think, recently in an interview. And look, if we're going to go and generate maybe in 2030 $100 billion in revenue, I think that's a big, big jump up. Of course, here execution is key and a lot of things can happen between now and 2030. But that's with every other company out there. Well, it's a good balance to some of the other stocks we're going to be talking about today in terms of risk profile. You know, for my first stock, I really want to talk about a trend that we've been seeing. So the stock I'm going to talk about is Momentum Holdings. But first, I think you have to understand that. As we're looking at the AI build out, there are many bottlenecks. One of them is something that the industry has essentially coined the term for called the copper wall. So for decades, data inside clusters, compute clusters, was moved between microprocessors using traditional copper wires. Now, we're seeing AI model sizes scale into trillions of parameters. time. And when you push that volume of information through standard copper cabling, that electrical resistance generates huge amounts of heat. It slows down processing speeds. It also consumes prohibitive amounts of power. Essentially, copper is physically incapable of keeping pace with the internal data demands of the cutting edge silicon that's required in today's AI race. The reason solutions have emerged and the solution has been primarily the total transition to optical interconnects. These are systems that convert electrical signals into light, and then they route that data via fiber optic transceivers at lightning speeds. Now, moving data at the speed of light, that allows the data centers to scale up their computing power, but it also means that they can lower their power consumption and thermal strength. So this is a mandatory requirement for the AI architecture build out, and this is where like Lumentum comes into play so Lumentum's business model they're a b2b industrial hardware manufacturer they design build and sell photonics specialized laser chips The lasers and optical transceivers that turn electrical data from computer servers into beams of light, that's the core of Lumentum's business, allowing that data to travel through fiber optic cables at these high speeds. They also have an industrial tech part to their business, and that's where they have applications like 3D sensing chips, high precision industrial lasers for cutting and welding sheet metal or manufacturing electric vehicle batteries. Cloud and networking business, that's the primary driver of Lumentum's growth right now. And Lumentum essentially sits at the middle of the kind of global tech supply chain. They have their customers essentially fall into three key areas. Number one is the cloud hyperscalers. So of course, the tech giants that are building the AI data centers like Alphabet, Microsoft, Amazon, they need Lumentum's optical systems to connect thousands of AI chips together in the way that I explained earlier. They also have clients that are like traditional telecom giants, and then even original equipment manufacturers that embed Lumentum's lasers into retail products. So just to kind of understand what Lumentum's business is and how it works, you know, they are seeing obviously tremendous growth in their business. Just their Q4 results net revenue was up over 100% year over year. They continue to kind of interview that the CEO of Lumentum, Michael Hurlston, conducted with Bloomberg Television recently. Essentially, he stated that Lumentum is unable to meet about 70% of customer demand for its core AI products. This essentially means that also they can't address about 30% of their order log for alternative components all the way through 2028, which means their sold-out product to build and qualify a brand new semiconductor laser fabrication facility. So they are very much insulated in many ways from a lot of their fast following competitors. They have a $2 billion strategic purchase commitment from NVIDIA.com.
[10:00] secure components for the Blackwell chip rollout. And of course, they've also been fortifying their long-term market position in a few different ways. They acquired a company called Cloudlight that has really accelerated their high-speed transceiver packaging abilities. There was an event that was held recently called the OCP Global Summit. While there, Lumentum demonstrated essentially their pioneering optics technology alongside industry giants like Corning and Astera Labs. And this essentially is aiming to replace the standard motherboard copper traces with light wave conduits. What this means is that Lumentum is looking to expand its addressable market to the internal chip-to-chip architecture. So it's a really interesting business. We've seen a little bit of a pullback in the price just kind of broadly that's happening across the AI trade. But I do think that this is a really, really fascinating play within the broader AI build out. They continue to see some fluctuations in terms of their bottom line growth, just kind of given the mechanisms of this business. But, you know, their backlog, the inability to meet so much of their customer demand because the demand is so high, and then just where they sit in the value chain in the AI build-out, I think Lumentum Holdings is an interesting one to watch. Yeah, and Similarly to Nebius, we have NVIDIA backing them and investing in the company as well. in pretty good position to be in. Now my second pick is actually some call it the anti-NVIDIA, which is Broadcom. Now why is it called the anti-NVIDIA? Because well, The big customers that go to Broadcom are of course huge customers of NVIDIA, but they want to diversify away. from NVIDIA not rely too much on NVIDIA chips. And so they went to Broadcom. When you look at Entropic, OpenAI, Meta, Google, TPUs, They go to Broadcom, they design, they co-design those chips with Broadcom to make sure that yes, Nvidia cannot, let's say, squeeze every dime out of these companies with their chips, and they rely less on the Nvidia architecture and more on on their own, which in turn can make their internal workloads, of course, more efficient. The return on investment there can make more sense. Does that mean that NVIDIA will not continue to grow? No, I still believe that NVIDIA will stay the number one player in the field for many, many years to come. But Broadcom, again, based on what the management has told us, they're looking at $30 per share of EPS. 30 dollars of earnings in 2028. As of right now, this is a company that's trading at around $340 per share or so. So if you want to put a small multiple on that 2028 target, It's really not that expensive for a company that is expected to grow very quickly. They told us that AI revenue, only AI revenue, not that's just a segment which is the largest segment of the business, but not the whole business, is expected to double next year to $115 billion, And then they see doubling again to $230 billion the year after that. To me, when management tells me this, of course, management needs to have a good track record, otherwise they can make up any numbers and then they won't deliver on it. if they tell me already today and it fits the whole story of the whole industry that There's just so much demand they cannot supply enough. Then, We're looking at a company that's going to generate over $230 billion. two years from now. while still corroding across the board, margins of course are very good. This is very unlike my first peak. This is a company that does generate billions and billions of dollars, tens of billions of dollars in free cash flow. Yes, this is also a company that is participating maybe in the circular financing game but we've spoken about that i think in in past videos as well i just see this as them viewing an opportunity to accelerate the industry. They have the means to do it. And so this is what is happening right now. Broadcom Yes, it has risks to it because it does have big clients like and tropic. and OpenAI, and it's something that we spoke about in Friday's video, is what happens if those companies do not grow as fast as expected. How does that impact a company like Broadcom? It is a risk to know. So, it's not a problem, right? Customers like Meta, like Google, where I don't think there are issues and others as well. I don't think there are issues of not meeting their commitments there, but purely focusing on Broadcom's business I do think it is very, very well positioned because I do think that there are going to be these big companies and maybe more in the future where, yes, they would like to develop more and more of their own custom silicon. So Broadcom, Marvel being another name, but Broadcom being the biggest one there is definitely
[15:00] going to benefit from it And then the question becomes, can OpenAI and Entropic really grow as fast As expected, they don't have to make sense valuation-wise per se. They just have to make sense. The business has to make sense. Like, If they go public at the $2 trillion valuation, but they're only going to generate, let's say, $100 billion, then $200 billion in revenue. it's still $200 billion, so that's still good to meet the commitments. and grow. But it might not be good enough for the stock to be trading at $2 trillion. But again, that's not my problem. as a Broadcom shareholder. That's probably a problem for Entropic and OpenAI shareholders. But I do want to put a Broadcom in in this discussion because it's also trading at, I think, forward PEs closer to 20 times, 21 times right now for a company that's expected to grow this quickly. and is already quite profitable. In this market, I view this as a favorable risk reward pick. Yeah, I really like Broadcom. I think they're a quality business and the market's certainly been a bit hard on the stock recently. The final company we're going to talk about today, MyStock, is a business called Coherent. And I talked earlier about the AI value chain. This spans everything from semiconductors to networking and physical infrastructure to cloud compute to large language models to software applications. buckets. Coherent sits at that critical networking interconnect layer. Again, similar way to Lamentum, operating within the continuous bottleneck that physical AI hardware infrastructure is facing. You know, when NVIDIA, for example, designs GPUs, the physical challenge of modern AI cluster scaling is data movement. And if it can't move between thousands of GPUs fast enough data, that translates the computer processing into hyperfast, low latency light signals. So their business model is again built on kind of controlling the entire physical stack from growing raw compound semiconductor crystals in a lab to building the final high speed optical transceivers that power a lot of modern infrastructure. So Coherent owns specialized fabs that produce what are known as engineered substrates. This includes indium phosphide, and gallium arsenide. And what are these is they transform these raw wafers into laser engines, essentially. So they generate revenue through volume-based hardware sales. Their components have to be custom-tailored and qualified inside customer systems over months or years. So this creates a very predictable recurring revenue, as well as just repeat purchase dynamic. Coherent non-core assets to double down on its data center and communication segment. This is something we've seen broadly within the space. Coherent has been no exception. So its data center and communication segment accounts for about 75 to 80 percent of its total revenue. That's most of the business at this point. The remainder of its business serves industrial manufacturing lasers like precision cutting and EV batteries and consumer tech, but most of it is the data center business. integrated optical platform architectures. It has its photon link platform, for example, and this bundles lasers, optics and fibers into a single plug and play assembly for its clients. and one of the things that's also interesting as well is as ai clusters are kind of outgrowing traditional copper They're pivoting towards what's known as co-package optics and near package optics, where these laser fiber optics, they're mounted directly onto the same silicon substrate as the compute switch. And of course, you have the backing of the big companies like NVIDIA and others that are key to Coherence's growth story. Now, management has said in recent earning calls that the primary ceiling on their data center revenue, which, as I noted, now makes up the bulk of the business. The ceiling isn't assembly. It's not testing capacity. It's raw internal laser output. So Coherent is producing 80% more indium phosphide lasers than it was a year ago. And it's currently on track to double its internal output within the next few months. And so we're continuing to see also that it plans to double that again to meet the continued hyper growth cycle. This is a company with a very diversified enterprise footprint. They generate revenue across a global portfolio of industrial manufacturing, lasers, advanced engineering,
[20:00] materials. Their revenue base is about $7 billion as of fiscal 2026, so they have a nice capital cushion there. And Coherent is also poised to be one of the first movers in the upcoming co-packaged optics architectural shift. Management has said that they plan to start recognizing meaningful revenue from this business within the next quarters that would place them broadly ahead of the industry curve. It's a really, really interesting business. You know, the other thing I will note is that, The AI industry is looking at an engineering transition from 800 gigabit optical networks to the next generation 1.6 terabit transceivers. And at that 1.6 terabit networking speed, the power consumption of a standard data center module threatens to really overheat clusters and less operators are utilizing coherence indium phosphide modulators. So we are continuing to see that growth from this business. You know, revenue growth is significant. significant. I do think that they're broadly well insulated from a lot of the broader credit fallout that we've been seeing in the space. And of course, they're working with some of the most well capitalized companies on earth as their clients. So Coherent, another stock to consider within the AI infrastructure build out and looking specifically within that infrastructure bottleneck. Well, four very different AI stocks for today, comments. Are you a buyer of any of these stocks? Do you already own these businesses? What other stocks do you think we should be talking about as we continue to look at the AI revolution and build out We'd love to hear your comments. please like and subscribe and we will see you in the next video. Thank you. . Thank you.
