From Corning to Ciena, a 10x stock opportunity in the AI optical communication supply chain

Organized & Compiled by: Deep Tide TechFlow

Host: Brian, formerly employed at Target & Amazon

Podcast Source: BWB - Business With Brian

Original Title: Millionaires are Hitting These 10X Stocks HARD!

Broadcast Date: June 21, 2026

Key Summary

The real bottleneck in AI data centers is not a single chip winner, but the entire photonic industry chain that converts electrical signals into optical signals and transports massive amounts of data outward. Brian’s core judgment is: as the industry upgrades from 800G to 1.6T, and even continues toward 3.2T, the earliest to reap excess returns are often not the most popular front-line companies, but suppliers like Corning, Amphenol, Ciena—those all giants that all players must rely on—as well as upstream materials and testing segments. This podcast thoroughly outlines the complete photonics supply chain, and before Wall Street’s herd rushes in and wakes up too late, these are the golden high-growth stocks you must keep a close eye on.

Highlights and Insights

Why AI Data Centers Must Shift to Optical Communication

"Copper cables are hitting a physical limit; every data center will eventually switch to optical. China has already proven to the entire industry that this path can go even further."

"Once data transmission exceeds about 3 feet, copper cables quickly lose their advantage, generating more heat and consuming more power; optical solutions can address these issues simultaneously."

"Switching from electrical to optical signals—that’s the core significance of photonic technology."

Why Investment Opportunities Are Often Found in the Supply Chain Rather Than in Frontline Companies

"As long as a new technology proves to work, the greatest wealth often flows first to those companies that all participants must depend on, rather than the one headline name."

"Glass, lasers, connectors, materials, and testing equipment—no one can be missing. That’s where the most value lies in the photonics industry chain."

Corning’s Highlights

"Corning’s optical communication revenue grew 36% last quarter, but profit increased 93%, indicating that pricing power and scale effects are both materializing."

"Corning has become the core supplier relied upon by Meta, Amazon, Google, Microsoft, OpenAI, and Nvidia. No other competitor in the world has such a client list, and these relationships have already turned into multi-year locked-in revenue."

"Meta committed up to $6 billion, Amazon signed multi-billion-dollar contracts, and two other mega clients also signed similar agreements. These revenues were locked in many years before actual fiber deployment."

What Do Amphenol and Credo Represent?

"If you want a broader, less volatile, and reasonably valued optical communication interconnect stock, Amphenol is a name worth long-term attention."

"Credo acts as a bridge between the old and new worlds, capable of squeezing the lifespan of rack-mounted copper cables to the limit and extending into optical communication."

"Credo’s risk is also clear: it has very high customer concentration. If one mega-client pauses procurement, its stock price could be hit hard."

Opportunities in System, Upstream Materials, and Testing Layers

"Ciena’s value lies in enabling existing fiber to carry more data without re-laying new cables."

"AXT is positioned further upstream, nearly a scarce supplier of key wafer materials for laser chips, but it faces very high export license risks from China."

"VEO Solutions is more like a 'seller of shovels' in the optical communication world, because whether it’s fiber links, transceivers, or system equipment, all must be tested before deployment and monitored afterward. VEO sells the essential testing tools for all these devices."

Theme Allocation and ETF Choices

"If you don’t want to pick companies one by one, there are now pure photonics-themed ETFs that can cover this main line with one click."

"But these funds are still new, small in scale, and have relatively high fees. They are better to keep on your watchlist rather than chase blindly."

China Has Significantly Raised the Ceiling for Fiber Transmission

Brian:

Engineers recently lit a single strand of glass fiber in China, which can carry five times the data capacity of existing systems elsewhere. This isn’t a new laid cable or large-scale excavation; it’s a fiber thinner than a hair, directly activated inside existing underground cables. Previously, transferring data equivalent to the entire US Congress Library might take half an hour; now, it takes about five minutes.

This technology has not yet been fully implemented in the US, which shows how fast this field is evolving. AI is generating data floods far beyond current transmission capabilities, and US data centers are increasingly lacking this capacity. All mega cloud providers will eventually need it, and they won’t build the entire system from scratch—they will buy.

They buy glass, lasers, and chips that convert electricity into light, and only a few suppliers can truly provide these. From my years of experience on the procurement side of the supply chain, I can tell you that the pattern of these opportunities has hardly changed. As long as a new technology proves to work, the greatest wealth tends to flow first to those companies that all players depend on, rather than the headline names.

Why Photonic Technology Is Now a Core Variable

Brian: Today, I want to break down the entire photonics industry chain for you, explaining each layer and the listed companies associated with it. Why photonic technology, and why now?

The answer boils down to a hard constraint. Inside data centers, all chips need to communicate with each other. For short distances, copper cables are still the winner; but once you want to transmit data beyond about 3 feet, copper’s problems quickly surface—heat, power consumption, and efficiency all worsen with distance.

Optical signals almost solve all these issues at once. They transmit farther, generate less heat, and consume only a fraction of the power compared to copper. Switching from electrical to optical signals—that’s the core significance of photonic technology.

More importantly, this turning point is now very clear. Every data center is upgrading from 800G to 1.6T, and 3.2T is already on the table. Meanwhile, the fiber mentioned earlier in China pushes the industry ceiling even higher.

Breaking it down, the most critical layers include: the glass, fiber, and cables that carry optical signals; the connectors that link everything; the system equipment that lights up fibers and transmits data between buildings and across countries; and the more fundamental materials and testing equipment. Chips, lasers, and silicon photonics I’ve discussed in previous videos, so today I focus on these often-overlooked but equally profitable segments.

In these groups, I will suggest names worth watching. But I must clarify that many stocks have already risen significantly, and the real attractive entry points may only come after a correction.

Why Corning Is the Most Worth Watching in Glass and Fiber

Brian:

Starting with the most basic material—glass—the first name is Corning. A 175-year-old materials company, responsible for manufacturing the fiber itself, the “glass filaments” mentioned at the start. It holds about 20% of the global fiber market, making it a very core player.

Corning’s real edge lies in technology. Its latest generation fiber can pack roughly twice the number of cores in the same physical space, which is desperately needed in overcrowded AI data centers. Its bend-resistant glass is also very hard for competitors to replicate. Coupled with the world’s largest fiber factory and US-based supply that complies with “Buy America” rules, these factors form its true moat.

Because of this, Corning has become the core supplier relied upon by Meta, Amazon, Google, Microsoft, OpenAI, and Nvidia. No other competitor has such a client list, and these relationships have already turned into multi-year, locked-in revenue streams.

Industry demand for fiber grows about 22-25% annually, but the entire industry’s new supply capacity is only about half that growth rate, with delivery cycles exceeding 60 weeks. Large clients pre-order capacity years in advance, sometimes paying upfront to lock in supply. Meta committed up to $6 billion, Amazon signed multi-billion-dollar contracts, and two other mega clients also signed similar agreements. These revenues are locked in years before fiber deployment.

What I find most impressive is profit elasticity. Last quarter, Corning’s optical communication revenue grew 36%, but profit surged 93%, more than doubling the revenue growth—showing pricing power and scale effects in action. On a company-wide basis, operating profit margin has increased from about 8% two years ago to over 16% now, with management targeting 20% by year-end.

Of course, this story is no secret now. Corning’s current PEG is close to 3, and its price-to-sales ratio is around 9, which isn’t cheap for a materials company. So, if you want a stable, less volatile way to allocate in fiber, Corning is suitable, but a more prudent approach is waiting for a better correction.

Core Companies in Interconnects: Amphenol and Credo

Brian:

Next, moving up to the interconnect layer—the segment that truly connects all components—the first name is Amphenol. A relatively low-profile giant, making high-speed connectors and cables, including both copper and fiber. Today, almost every new AI server rack features its products.

Understanding Amphenol’s core is key: it’s essentially a highly efficient acquisition machine. In January, it spent $10.5 billion acquiring CommScope’s entire fiber connectivity business, instantly transforming from a connector company into a significant fiber player. Now, AI data center business is its core engine, the largest segment, with organic growth over 80% last quarter.

Its order backlog hit a record $9.4 billion, with new orders outpacing shipments. Revenue jumped from about $4 billion to over $7 billion last quarter, and operating margins expanded from 22% to nearly 28%.

This is notable because, normally, a $10 billion acquisition causes a company to face integration challenges, often squeezing margins temporarily. But Amphenol’s margins actually increased, indicating its ability to rapidly integrate acquisitions into its high-standard operational system. This means the deal has become a profit booster rather than a burden.

Even more impressive, its valuation isn’t unreasonable. Amphenol’s PEG is about 0.7, and its price-to-sales ratio is around 7. For a fast-growing company, such valuation is rare. If you want a broader, less volatile, and reasonably valued optical interconnect stock, Amphenol is a very good long-term candidate.

The second name in the interconnect layer is Credo Technology. It acts as a bridge between the old and new worlds. It uses low-power chips to maximize copper cable transmission inside racks, while also developing optical chips and cables for longer distances, seamlessly connecting the two.

Recently, Credo acquired a silicon photonics company, completing its end-to-end product stack up to 1.6T, and has shipped to all top five US mega cloud providers. Its growth has been explosive—quarterly revenue jumped from $135 million to $437 million in just six quarters, more than tripling.

Another telling metric is its gross margin of about 68%, more typical of a software company than hardware. Operating margin has nearly doubled to 37%. Management’s guidance for next year’s revenue growth remains over 80%.

However, risks are concrete: it supplies only to five major clients, with three accounting for 88% of revenue. If any mega-client slows procurement, the stock could be sharply punished. Also, insiders, including the CEO, have been selling shares, and its current price-to-sales ratio is about 35, essentially pricing in “almost everything continues smoothly.” PEG is close to 1, indicating strong growth, but such companies are more like high-conviction bets that should wait for deep corrections.

Key Player in the System Layer: Ciena

Brian:

Moving further up, the system layer—lighting fibers and transporting data between buildings and countries—the most critical name is Ciena. It’s a leader in coherent optical technology in the West. Its WaveLogic technology is the first in the world to compress 1.6T of data into a single wavelength signal. Think of it as a “no-dig capacity expansion” cheat code, allowing existing fiber to carry more data without re-laying cables.

And this isn’t just R&D. In just two quarters, this product secured 49 customers. Its position with major clients is also strong. Its solutions are adopted by three of the four largest cloud providers, and cloud customers now contribute nearly half of its revenue.

The most critical data point is backlog. Last quarter, Ciena’s backlog increased by about $2 billion in 90 days, reaching nearly $7 billion. Almost all of it is scheduled for delivery next year, meaning it has already locked in over a year’s worth of revenue.

With revenue hitting new highs, up 40% year-over-year, its operating margin doubled from below 8% to over 15%. The market, however, recognizes these positives, and valuation is very aggressive. Ciena’s forward P/E is around 120, almost pricing in “perfect execution.” So, while fundamentals are strong, valuation demands respect.

The Bottleneck Further Upstream: AXT and VEO Solutions

Brian:

Next, I’ll discuss my favorite layer—the “suppliers behind suppliers.” The topmost name in the entire chain is AXT. Very few companies globally can produce indium phosphide wafers, which are the critical material for all laser chips. From this perspective, it’s almost a natural moat, as growing this crystal isn’t something you can do overnight.

Now, with all laser manufacturers competing for supply, AXT’s backlog of such materials has surpassed $100 million, a record. But it also faces the most specific and serious risk: almost all manufacturing is in China, which now requires government approval for every export. This has directly impacted its revenue realization last quarter. Even with a record backlog, shipment isn’t guaranteed.

Additionally, the company has raised about $550 million, causing shareholder dilution; insiders have sold over $70 million worth of stock during the rise. More troubling, it’s still unprofitable, though losses are narrowing, and gross margin has increased from 17% to about 30%.

So, AXT’s story is real, and the bottleneck is real, but at a valuation near 66 times sales, it’s more like a high-volatility, high-risk “lottery ticket” rather than a core holding.

The last name in this layer is VEO Solutions. It’s more like a “seller of shovels” in the optical world, because whether fiber links, transceivers, or system equipment, all must be tested before deployment and monitored afterward. VEO sells the essential testing tools for all these devices.

The beauty of this position is that it’s not sensitive to which specific winner emerges. You don’t need to bet on which laser company will win or which transceiver will dominate, because regardless of who wins, their equipment must be tested by VEO’s tools. I personally like this business position very much.

Over the years, VEO’s revenue has remained around $285 million per quarter. Only with the acceleration of AI infrastructure buildout did its network testing business explode, rising over 54%, as data centers rush to verify large volumes of new optical equipment. Now, quarterly revenue exceeds $400 million, and operating margins have returned to double digits.

It also has a quieter, high-margin second business—producing anti-counterfeiting coatings printed on global banknotes—adding a high-margin support to the company. Note that insiders, including the CEO, continue to sell shares. Its current PEG is about 1.4, not too high, but like others, it has already risen significantly, so waiting for a cooling-off makes more sense.

If you don’t want to pick stocks individually, a new pure photonics ETF has appeared

Brian: Many might ask, why didn’t I focus on Coherent, Lumentum, Marvell, Broadcom, or the wafer fabs that make chips?

Of course, these companies are worth watching—they’re in the core laser and silicon photonics segments, which are very important parts of the whole theme. But I’ve already done a detailed breakdown of them before, so today I want to highlight other often-overlooked parts—glass, connectors, system equipment, and their upstream suppliers.

If you prefer not to pick companies one by one, there’s now a one-click way to cover the entire main line. A newly launched pure photonics-themed ETF, ticker FOTO, by Tuttle Capital, is designed for this.

What I like about it is that it truly focuses on “pure theme” selection. It excludes large diversified companies where photonics is only a small part of their business, concentrating instead on genuine optical companies. Its top holdings include the laser and transceiver companies I mentioned earlier, like Lumentum, Coherent, Fabrinet, as well as IPG Photonics and Inphi. The fund has only 15 names, with the top 10 holdings accounting for nearly 90%, making its style very concentrated and clearly betting on “pure photonics.”

Of course, full disclosure: this fund is only a few weeks old, with no long-term track record yet, a small scale of about $140 million, and a fee rate of 0.75%. You should do your own research first. But if you want to start observing the “copper-to-light” main line, FOTO is definitely worth watching.

Summary: Copper’s Limits Are Reached, True Beneficiaries Will Spread Along the Entire Light Chain

Brian: To conclude, copper has begun hitting physical limits, and every data center on Earth must migrate to optical. China has already proven that this path can go even further.

Funds are now flowing into this chain. The real question isn’t whether this transition will happen, but which companies will benefit the most from the incremental growth during this accelerated switch.

If I combine the laser and silicon photonics companies I discussed earlier with the glass, connectors, system, and upstream suppliers from today’s video, you essentially have a fairly complete map of the entire photonics industry chain.