Mizuho: 'We remain positive on the optical roadmap with $Lumentum(LITE.US), $Credo Tech(CRDO.US), $Tower Semicon(TSEM.US), $NVIDIA(NVDA.US), and $Broadcom(AVGO.US) as key beneficiaries'.

"We share an optical market update post our expert call. Key takeaways:

1) NPO as the key NT optical driver, ramping into 2027E+, and driving 5-10% cost savings vs optical pluggables,

2) CPO as the next architectural step driving ~30% cost savings vs pluggables, broader adoption into 2028E+, while deployments are constrained by supply chain readiness/maturity and OCS could be a complementary product, enabling better topology scaling,

3) Our call noted SiPho penetration growing from 43% in 2025 to 76% in 2030E, we believe with pluggables/NPO and CPO longer term, fueling demand for CW lasers (+ve LITE) and SiPho modules (+ve TSEM/STM), and

4) InP substrate supply remains constrained but with major capacity additions into 2026-27E, we believe growing >80%/>30% in 2026E/2027E, and laser OEMs scaling.

We remain positive on the optical roadmap with LITE, CRDO, TSEM, NVDA, and AVGO as key beneficiaries."