---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/42841516.md"
description: "Manager at a Global Distributor on optical component demand: "Overall optical components market exceeded our expectation because we were not projecting such a high growth rate for us. Customers were accelerating transition from 400G to 800G." Vendor Growth Metrics:"Between Coherent and Lumentum, Coherent performed the strongest."> Coherent: Saw estimated demand growth increase by 8% quarter-on-quarter and 25% year-on-year, driven by 800G optical components, high-performance lasers, and AI cluster interconnected solutions. Coherent dominated in meeting increased optical bandwidth requirements per GPU cluster, high-fiber connectivity requirements. Overall performance was supported by increased networking investments from hyperscalers. > Lumentum: Experienced growth in the range of 5% to 7% quarter-on-quarter, or 18% to 22% year-on-year, bolstered by cloud and AI demand growing at 25% to 35% year-on-year.Speed Segment Breakdown:> 400G: Remains flat or exhibits low-single-digit growth year-on-year, serving as a volume product for traditional cloud and enterprise deployments.  > 800G: Acting as the core growth engine for AI infrastructure, seeing 50% to 100% year-on-year growth.  > 1.6T: Moving from early evaluation into initial procurement or production validation testing (PVT) phases by hyperscalers, with a 30% quarter-on-quarter demand growth from a small base and a commercial ramp-up expected by 2027.  > 3.2T: Confined to prototype and roadmap discussions with fewer than 10 global customers, contributing less than 5% of current optical revenue. Pricing & Margins:> Average selling prices (ASPs) for 800G AI optic modules saw a 10% increase year-on-year driven by product mix and tight supply.  > Quarter-on-quarter ASP growth for 800G is tracking at 2.5% to 5%, while high optical fibers are up 1% to 4%.  > Distributor margins are tightening on mature optical products and telecom optics due to increased competition and price erosion, while high-speed AI optics maintain stability.Competitive Dynamics & Contracts:> Chinese vendors (such as InnoLight, Eoptolink, and Accelink) are aggressively pricing and winning share in cost-sensitive, high-volume segments like 400G and pluggable optics, primarily displacing Lumentum within China.  > Coherent typically engages hyperscalers on 1- to 3-year multi-year contracts for Al optical products, while Lumentum primarily secures 1- to 2-year strategic agreements (such as for EML lasers).$Coherent Corp.(COHR.US) $Lumentum(LITE.US)"
datetime: "2026-07-22T02:01:58.000Z"
locales:
  - [en](https://longbridge.com/en/topics/42841516.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/42841516.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/42841516.md)
author: "[Equity research](https://longbridge.com/en/profiles/2071818324550963200.md)"
---

# Manager at a Global Distributor on optical compone…


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