Serenity: SIVE Has Potential to Become the Next LITE

On July 6, Serenity expressed a long-term positive outlook on Swedish photonics company Sivers Semiconductors (SIVE), believing it has the potential to grow into the 'next Lumentum (LITE).' In recent months, Sivers has made several key advancements in the AI optical interconnect field, including collaborating with O-Net to promote the mass production of ELS, supporting Jabil (JBL) in the mass production of 1.6T LRO optical modules, partnering with GlobalFoundries (GFS) to develop continuous wave (CW) lasers for hyperscale cloud vendors, and entering the CPO (co-packaged optics) ecosystem through Ayar Labs with NVIDIA NVLink, AMD, Amazon, Alchip, and GUC. Additionally, the company is working with Lightium to develop TFLN+CW lasers, which are expected to support optical interconnect solutions for Marvell Celestial, Lightelligence, Lightmatter, and others, while continuously expanding its portfolio of undisclosed pluggable optical module clients. A recent TrendForce report indicated that cloud vendors like AMD are actively securing long-term supply agreements (LTA) for CW lasers, further validating the long-term demand outlook for independent CW laser suppliers. Serenity noted that as AI data center construction continues to advance, various optical interconnect architectures such as 1.6T optical modules, LRO, NPO, and CPO will develop in parallel over the coming years, providing Sivers with ongoing revenue growth opportunities. The company has recently completed an oversubscribed institutional financing round, with funds expected to be used to expand laser production capacity and strengthen wafer foundry collaborations, and plans to complete its NASDAQ listing in the coming quarters to support future acquisitions. The market is currently overly focused on the commercialization pace of CPO, neglecting the broad applicability of laser products in various architectures such as pluggable optical modules, NPO, and CPO. With the mass production phase of 1.6T optical modules expected to begin in the second half of 2026, accelerated CPO demand in 2027, and the NASDAQ listing facilitating acquisition strategies, Sivers is poised for a new round of performance and valuation growth.