3 Photonics Companies Making Quantum Tech Possible

Summary

All of a sudden, photonics seems to be one of the hottest fields among tech enthusiasts. Optical and photonics technology is massively important for AI applications that must field tremendous data throughput that exceeds the limits of traditional wiring. With photonics, data can be zipped through fiber-optic networks at far higher throughput than copper allows, with the added benefits of low latency and better energy efficiency. Beyond its applications today, photonics may become even more important in the coming years. The reason for this is that many of the benefits that photonics technology provides to AI applications have the same value for quantum technology. For investors, an alternative to picking up pure-play quantum tech firms like IonQ Inc. NYSE: IONQ—even for all the many reasons these companies may appeal to those with a healthy appetite for risk—is to look at companies making photonics tools that could power next-gen quantum tech down the line.Get Lumentum alerts:Sign Up Lumentum's Major Rally May Pose Valuation Concerns, But Revenue Momentum Is RealLumentum Holdings Inc. NASDAQ: LITE is a photonic technologies firm that got off to a strong start to the year and done a fairly good job of maintaining that momentum. Overall, LITE stock has doubled year to date (YTD), despite some horizontal trading in the last several months. Lumentum Today$833.59 +68.04 (+8.89%) As of 01:30 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$97.55▼$1,085.68P/E Ratio154.52Price Target$1,012.67 While the massive rally has not helped alleviate concerns about Lumentum's valuation—the firm currently trades at nearly 142x earnings—analysts are still largely optimistic about its prospects going forward. Two-thirds of the 21 analyst ratings for LITE shares are Buys, and Wall Street anticipates more than 32% more in possible upside to come. Lumentum's capacity to weather the storm in recent weeks, as AI stocks have taken a hit, is impressive...