**[Serenity: Laser Manufacturers May Have Greater Expansion Opportunities Amid AI Computing Power Demand, Lumentum Case Worth Noting]** BlockBeats News, September 7, Serenity published an article stating that the revenue estimation previously based on Sivers (SIVE)'s annual production target of 100 million CW DFB lasers was merely a demonstrative model. The more significant reason for its optimism about laser companies lies in the fact that these enterprises are not limited to a single laser product and can further expand into other segments of optical communication in data centers. Using Lumentum (LITE) as an example, Serenity noted that after its acquisition of Cloud Light (primarily involved in pluggable optical modules), it was able to expand the potential service market within data centers by more than fivefold. Lumentum's OFC presentation materials also showed that its ELS business, based on UHP laser chips, could bring about a roughly 2x TAM expansion opportunity. Serenity further pointed out that the laser business of just one UHP laser wafer fab could achieve an annual revenue scale of approximately $5 billion after ramping up production capacity. Combined with the 55%-65% gross margin for CPO lasers mentioned by AAOI, lasers themselves already possess high profitability. Serenity believes that even with continuous capacity expansion in the industry, there may still be a supply-demand gap in the laser market. Moreover, with the overlapping of multiple technology cycles such as NPO, CPO, and 1.6T pluggable optical modules, laser manufacturers are expected to continuously enter new product markets. Therefore, compared to companies that remain confined to a single supply chain tier, Serenity believes the market may assign a higher valuation premium to laser companies. [Original Link]