Market Overview

BlueFin Talks VCSEL 'Drama' Ahead Of Q3 Earnings Season

Share:
BlueFin Talks VCSEL 'Drama' Ahead Of Q3 Earnings Season

The VCSEL, or vertical cavity surface-emitting laser, market continues to experience "drama" and BlueFin Research Partners is compiling data and commentary from the VCSEL segment in an attempt to gain a better understanding of market dynamics.

The Analyst

BlueFin analysts John Donovan and Steve Mullane commented on the VCSEL market.

The Thesis

"The drama on the VCSEL front has been ongoing," Donovan and Mullane said in the Wednesday note. 

Some of BlueFin's findings include: 

  • Firsthand checks suggest that Lumentum Holdings Inc (NASDAQ: LITE) has seen a recent increase in new orders.
  • II-VI, Inc. (NASDAQ: IIVI) is focused on low-powered solutions, with the first real mass production likely to come in 2019.
  • II-VI is focusing on the current iPhone line-up and opportunities for the iPad Pro X.
  • II-VI appears to be ahead of rival Finisar Corporation (NASDAQ: FNSR) but the competition remains fierce.
  • Apple Inc. (NASDAQ: AAPL) continues to insist VCSEL demand will be "massive" in 2019 and 2020, and talks of internally developing VCSEL appears to be a "negotiating tactic at this point."
  • Apple has looked into fabrication in Taiwan and could produce its own VCSEL in 2020 or 2021 if its current suppliers don't increase production to meet demand.

Price Action

Shares of Lumentum Holdings were trading lower by 1.6 percent at the time of publication Wednesday. Shares of II-VI, Finisar and Apple were lower between 2-4 percent.

Related Links:

William Blair: Reports Of Apple-Related Problems At Finisar 'Profoundly Inaccurate'

Potential Winners And Losers In The Optical Space From The Tariff Dispute

Posted-In: Apple Suppliers BlueFin Research Partners John Donovan Steve Mullane VCSELAnalyst Color Analyst Ratings Tech Best of Benzinga

 

Related Articles (AAPL + FNSR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Cowen: Nike's Valuation Looks High Amid Unprecedented North American Competition

Mid-Afternoon Market Update: Dow Falls Over 500 Points; Imperva Shares Surge