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Exclusive Content from MarketBeat
The Speed of Light: 5 Stocks Powering AI’s Optical FutureWritten by Thomas Hughes. Originally Published: 6/2/2026. 
Key Points
- NVIDIA has invested more than $6.5 billion in photonics companies this year to overcome copper wiring bottlenecks and advance AI infrastructure.
- Marvell Technology, Lumentum, and Coherent Corporation are established, profitable photonics leaders whose stocks are rallying on business outperformance and improving guidance.
- Pre-revenue Aeluma offers a potentially disruptive silicon photonics manufacturing process but faces meaningful adoption and dilution risks before projected 2027 revenues.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
NVIDIA (NASDAQ: NVDA) has invested billions in photonic companies so far this year, signaling where the next generation of AI could be headed. Investment topped $6.5 billion as of early June, and the size and scope of those individual investments should be an eye-opener for investors. The company is working hard to bypass the bottlenecks created by traditional copper wiring so it can unleash even more AI power. That drive to stay ahead is exactly why NVIDIA remains the top choice for investors. As the leading supplier of AI hardware and services, NVIDIA's dominance isn't tied to any single technology. Photonics or not, it leads.
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Advantages of photonics include exponentially faster speeds and improved efficiency, but perhaps even more important is parallelism, the ability to handle multiple data streams across a single conduit. Parallelism is critical to AI because it relies on massive amounts of data from various sources that require simultaneous processing. The need for parallelism is not going away, as data loads and the number of inputs continue to grow as AI models advance. Parallelism is also important because it helps computers more closely mimic natural brain function and deliver real-time results. NVIDIA Bets on These 3 Players to Build the Future of AIBeyond the technology itself, these deals strengthen NVIDIA's supply chain and signal its ability to adapt as standards evolve. Notably, none of the agreements are exclusive, meaning NVIDIA isn't locked into any single manufacturer or technology—it can pivot toward whatever solution proves most capable. Marvell Technology (NASDAQ: MRVL), Lumentum (NASDAQ: LITE), and Coherent Corporation (NYSE: COHR) are all established leaders in the field with the maturity to deliver and capacity to deliver at scale. These three companies are not startups. They generate revenue today and deliver value to their investors. Beyond NVIDIA, they are the #2, #3, and #4 ways to play photonics this year. Their products span the range, including lasers, optical components, and transceivers. In addition, their stock prices are in rally mode, supported by business outperformance and improving guidance. 
NVIDIA’s photonics investment also helps secure future supply and capacity, reducing risk in the outlook. More importantly, it is investing across the stack, helping ensure future integration as technologies advance. As it stands, the global photonics industry is valued at approximately $1.25 trillion and is expected to grow at a mid-single-digit compound annual growth rate through the middle of the next decade. Within that, silicon photonics, which embeds optical components directly onto silicon wafers, is worth a few billion dollars and is expected to post industry-leading growth of more than 30% annually for the foreseeable future. Aeluma Stands to Disrupt Silicon Photonics ManufacturingAeluma’s (NASDAQ: ALMU) claims to fame are twofold: high-quality quantum-dot lasers for silicon photonics and an industry-disrupting manufacturing process. These advantages make it the #5 way to play photonics. Quantum-dot lasers are significant because they enable high-speed data transmission suitable for numerous applications. The real story, however, is manufacturing. Traditional photonics require optical materials to be glued to the silicon substrate, creating challenges related to complexity, scalability, and functionality. Aeluma's process instead grows optical-quality substrate directly onto the silicon wafer, producing a more homogeneous result that is cheaper and suitable for far more applications. The reason NVIDIA is not investing in this company is that it is still in the pre-revenue phase. As a result, the advancement of commercial capabilities and the acquisition of sales contracts represent the near-term catalyst. Aeluma is not marketing a branded product so much as seeking partnerships in the data center and defense contractor fields. The goal is securing design wins and prototype certifications that lock in future revenue. Once completed, the company will enter production and, in theory, begin generating significant revenue in 2027. Aeluma Can Disrupt, But Will OEMs Buy In?Aeluma faces adoption risk and dilution risk. While Aeluma’s product offers numerous advantages, there is still some question about adoption, and NVIDIA’s investment trend only underscores that point. Hyperscalers are rushing to build out their data center networks and may opt for alternative technologies. In this scenario, Aeluma may never gain traction. However, that seems unlikely given the cost of data center construction and operation. The more likely scenario is that contract wins emerge by year’s end. Dilution is a more pressing risk. The company is still an early-stage company relying on government research contracts. Executives have relied on dilutive sales to fund operations and will likely need to raise additional capital before achieving profitability. As it stands, the company appears to have a clear runway through the end of next year. 
Aeluma’s price action reflects growing optimism that a contract will be signed before more funds are needed. The stock advanced strongly in Q2, hit a fresh high, and flashed a continuation signal with more than 100% upside. |
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