4. Lightwave Logic, Inc. (NASDAQ:LWLG)
Lightwave Logic, Inc. (NASDAQ:LWLG) was among the stocks Jim Cramer looked at as he discussed the recent bounce in software stocks. Cramer mentioned the stock during the episode and stated:
It’s hard for me to recommend this as a nearly $2 billion company when it’s losing money, making a hundred thousand bucks in revenue, even if the story’s real and just beginning to get etched into the AI supply chain. That’s why I’d rather stick with Coherent or Lumentum, although you missed a nice part of the run there… Putting the other options aside, though, there are real challenges for Lightwave. I won’t pretend to be an expert in photonics, but we don’t really know if the company’s proprietary material stays stable over time or if it could be manufactured consistently…
I like the theme a lot. I think the market’s right that optics will matter more as AI infrastructure scales up. I think the scramble to secure lasers, transceivers, and photonics components is real. I also think there’s a serious long-term opportunity for somebody that can help deliver higher speed and lower power to the data center at a reasonable cost. And that’s why Lightwave keeps getting attention. The problem is this: This stock has already run as if the future’s settled…. run like Marvell Technology, another great winner in this sector, and I’m not sure that’s the case. See, even though this is one of the hottest and most important themes in the market, I have a hard time telling a conservative investor to chase Lightwave here.
This is the kind of name that can absolutely keep ripping. I get that. This theme isn’t going away anytime soon, I get that. It’s part of the fourth industrial revolution, I get that too. But when a stock is going up tenfold in a year, and the business is still at an incredibly early stage, and losing money with very little revenue, I think some disciplines should matter. You don’t have to hate the technology to say that the stock may have gotten ahead of itself. We don’t even know how difficult it is to mass-produce this product. So here’s the bottom line: If you like what you’ve heard about Lightwave launch, again, look, I gave you some stuff to like, keep it on the watch list, I think. But after such an incredible move, I think there are better, cheaper ways to play this, Coherent, Lumentum, and especially NVIDIA tomorrow morning.
Lightwave Logic, Inc. (NASDAQ:LWLG) develops and licenses advanced polymer materials used to improve data speeds in hardware for artificial intelligence, cloud computing, and telecommunications.
