A Chinese broker note summarizes four points on the optical module sector: large customers are unhappy with FCC rules and are expected to work around them with low policy compliance; DSP capacity is constrained, driving rapid demand for half-DSP LRO and no-DSP LPO solutions; agentic AI increases CPU-GPU interconnect demand, mostly on scale-out networks; and in 1.6T products, early validation results favor Innolight, Eoptolink, Coherent, and Linktel, with Linktel moving faster on 1.6T LPO.
The broker is bullish on optical module makers with strong LPO/LRO capabilities, highlighting Innolight, Eoptolink, Coherent, and Linktel as early 1.6T validation leaders.
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