In this article, we will take a look at the 5 Best Photonics Stocks to Buy Now. For a deeper discussion and an extended list, please see the 12 Best Photonics Stocks to Buy Now.
5. nLIGHT, Inc. (NASDAQ:LASR)
On April 24, Roth Capital lifted its price target for nLIGHT, Inc. (NASDAQ:LASR) to $81 from $74. It kept a Buy rating on the shares. Analyst Tom Hayes commented that the firm “accelerates its transition to a pure play directed energy laser provider” after exiting the welding and cutting markets. Hayes said that the first quarter will most likely be a low point. The company continues to deliver on the HELSI-2 project and begins implementing new programs.
On April 18, Stifel raised its target on nLIGHT, Inc. (NASDAQ:LASR) to $75 from $68. It maintained a Buy rating on the shares. The analyst informed investors that management “added credibility to our thesis” by portraying nLight as “a linchpin national security asset.”
nLIGHT, Inc. (NASDAQ:LASR) forecasts first-quarter 2026 revenue of $70 million to $76 million, consisting of approximately $54 million from Laser Products and $19 million from Advanced Development. The company forecasted a gross margin of 27% to 32% and Adjusted EBITDA of $5 million to $10 million, showing near-term execution expectations.
nLIGHT, Inc. (NASDAQ:LASR) provides semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. It operates through two segments: Laser Products and Advanced Development.
4. POET Technologies Inc. (NASDAQ:POET)
On April 27, 2026, POET Technologies Inc. (NASDAQ:POET) announced that Marvell Semiconductor wiped out all purchase orders for Celestial AI. It includes initial production units announced in April 2023, after Marvell claimed the company violated confidentiality obligations by spilling order and shipping information. The firm stated that Marvell sent a written notification of the cancellation on April 23. It also stated that it continues to fulfill orders for other customers, including a recently announced purchase order for around $5 million.
POET Technologies Inc. (NASDAQ:POET) had previously reported faster commercialization activities and growing client activity in AI networking areas. Chairman and CEO Dr. Suresh Venkatesan said that the firm received more than $225 million in funding during the fourth quarter and another $150 million in January 2026 to expand manufacturing capacity and satisfy customer demand. Venkatesan also stated that the company has received a production order in excess of $5 million for its Infinity optical engines. It wants to supply over 30,000 optical engines this year across high-speed as well as high-power applications.
POET Technologies Inc. (NASDAQ:POET) is a firm that designs, develops, manufactures, and sells optoelectronic products for the sensing, data transfer, and telecommunications markets. It created the POET Optical Interposer platform, which allows the combination of electronic and photonic devices into a single multi-chip module.
3. Applied Optoelectronics, Inc. (NASDAQ:AAOI)
On April 2, 2026, Applied Optoelectronics, Inc. (NASDAQ:AAOI) reported that it had received a new $71 million order for 800G single-mode data center transceivers from a major hyperscale customer. This brings the total to $124 million in orders from the customer since mid-March and more than doubles its previous backlog. The corporation looks ahead to the delivery of the initial order to reach $53 million, with the next order beginning in the second quarter.
Dr. Thompson Lin, founder and CEO, said that the new order had “the customer’s confidence in the firm and the growing demand for 800G optics.” The company had shipped the first 10,000 units of another 800G transceiver order to a separate hyperscale data center customer.
Separately, on April 29, 2026, Applied Optoelectronics, Inc. (NASDAQ:AAOI) reported that Texas awarded the firm a $20.9 million Texas Semiconductor Innovation Fund grant to fund manufacturing growth in Sugar Land. The firm announced plans to build a 210,000 square-foot facility near its headquarters. This will create over 500 jobs and raise US production capacity for AI-focused data center transceivers.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) develops and produces optical communication products. Its products include optical devices as well as modules and circuitry for fiber-to-the-home, cable television, point-to-point communications, and wireless applications.
2. Coherent Corp. (NYSE:COHR)
On May 5, 2026, Stifel boosted its price objective for Coherent Corp. (NYSE:COHR) to $412 from $275. It retained a Buy rating on the shares. It referenced the firm’s forecast that upcoming quarterly reports from Coherent, Lumentum Holdings, and Ciena Corporation would maintain momentum in the optical networking space. Stifel informed investors that it was raising estimates and target prices ahead of the firm’s fiscal third-quarter release.
Separately, on April 9, Coherent Corp. (NYSE:COHR) disclosed developments in silicon carbide epitaxy capabilities, which support power devices up to 10kV for AI datacenter and industrial applications. The company claims that its 150mm and 200mm thick epitaxy platforms enable more effective, high-power-density systems for renewable energy, rail, grid infrastructure, and AI datacenters.
Gary Ruland, senior vice president of Silicon Carbide LLC at Coherent Corp. (NYSE:COHR), said that next-generation datacenter power architectures and industrial systems were driving silicon carbide adoption. He further stated that the corporation’s thick epitaxy capability would help customers improve efficiency and power density in applications such as AI datacenter power distribution and uninterruptible power supplies.
Coherent Corp. (NYSE:COHR) produces, refines, manufactures, and markets engineered materials, optoelectronic components and devices, and lasers for the industrial, communications, electronics, and instrumentation markets. It works through networking, materials, and laser areas.
1. Lumentum Holdings Inc. (NASDAQ:LITE)
On April 10, 2026, Bloomberg reported that Lumentum Holdings Inc. (NASDAQ:LITE)’ demand for optical components is on the rise, with orders projected to fill capacity through 2028, citing Chief Executive Michael Hurlston. Hurlston stated that “the capex numbers from the U.S. hyperscalers are enormous” and that the firm is “falling further and further behind the demand,” forecasting that it will be sold out by 2028 within two quarters. He extended his guidance on being sold out until 2027.
The CEO said that Lumentum Holdings Inc. (NASDAQ:LITE) is looking into investing at least $100 million in its Tokyo-area factory and an adjacent site for more output. He noted that the sum could increase much higher, saying, “We could see it probably going up to even a quarter billion.”
Hurlston also said that capacity expansion is constrained, noting client demand for near-term output. He added that long-term demand appears to be sustainable for at least five years.
Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. It works in the Cloud and Networking, and Industrial Tech segments.
While we acknowledge the potential of LITE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LITE and that has 100x upside potential, check out our report about the cheapest AI stock.
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