Citi: Optical

Core Market Growth

> Market Opportunity: The global optical interconnects market is expected to hit USD 92 billion by 2028 (with a 65% 3-year CAGR), accompanied by an Average Selling Price (ASP) growth of an 18% CAGR.

Optical Chip

> Optical Chip Demand: Total demand is estimated at 1.714 billion units by 2028 (~62% to 63% CAGR from 2025).

> CW Laser Chips: Projected to see explosive growth to 987 million units by 2028 (~114% CAGR).

> EML Chips: Projected to reach 718 million units by 2028 (~34% CAGR).

$Applied Optoelectronics(AAOI.US) $Macom Tech(MTSI.US) $Coherent Corp.(COHR.US) $Lumentum(LITE.US) $Marvell Tech(MRVL.US) $Broadcom(AVGO.US)