AI Networking Stock Beats Nvidia by 7X With 135% Returns - Beth Kindig – Medium

In April 2026, global markets delivered strong performance, with both the S&P 500 and Nasdaq-100 posting their best monthly returns since April 2020. Amid this backdrop, I/O Fund outperformed, holding... Read original →

Lumentum’s surge signals a pivotal shift in AI infrastructure—from compute-centric to connectivity-constrained architectures. Its UHP lasers, embedded in NVIDIA’s co-packaged optics (CPO) roadmap, are forcing a full-stack redesign of 800G/1.6T transceiver ecosystems, accelerating adoption of EML arrays, silicon photonics, and advanced thermal solutions. Geopolitically, U.S. export controls under the CHIPS Act on photonic integration could compel Lumentum to diversify manufacturing to Mexico or Vietnam, inflating capex. Rivals like Coherent and Taiwan, China’s Genesis Photonics face a steep climb: transitioning from discrete components to integrated modules with at least a 12-month yield lag. Over the next 24 months, as AI clusters scale beyond 10,000 GPUs, CPO adoption will jump from <5% to ~30%, letting Lumentum capture ~70% of high-end optical margins—and potentially pressure NVIDIA to open its optical interface specs, reshaping the entire AI networking stack.