COHR at inflection point, shift in TPU competition landscape, Enterprise AI demand, MU

This week’s reports

COHR’s upside in optical transceivers - We were probably one of the first in calling out structural opportunities in the optics space, with LITE as our top pick. Since we published our report on LITE, its share has rallied almost 50% at its peak. We remain convinced that optics sector offers significant alpha, and we believe COHR is currently at a critical inflection point driven by surging AI data center demand.

TPU competitive dynamics update - AVGO’s share price has seen sharp correction since its earnings call, primarily due to concern on Google’s push to “customer-owned tooling” in future TPU generations. We highlight Google is very actively prioritizing its engagement with MediaTek as a second source, thereby fundamentally alerting the long term competition narrative.

Key insights on AI demand from ACN earnings - Following our deep dive in OpenAI’s enterprise ambition (the most read report in our history in case you missed it), ACN’s earnings offered us a glimpse into the progress made, and it sounded solid.