Is a fiber optics mega-cycle in the works?

Shares of fiber optics technology vendors are surging after Needham & Co. predicted a perfect storm of three different demand sources.


Shares of fiber optics technology vendors NeoPhotonics (NPTN), Lumentum Holdings(LITE), and others are surging after Needham & Co. analysts Alex Henderson, Quinn Bolton and James Ricchiuti put out a 90-page group report in which they raise ratings on four names to Strong Buy from Buy, and raise price targets on several stocks, predicting a “mega cycle” in fiber-optic networking.

Henderson and company predict a kind of perfect storm of three different demand sources, China, the metropolitan networking market, and the data center proliferation in cloud computing, something deemed unprecedented.

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