Photonics is key to AI, with data centers the main business driver in 2026. Large amounts of data require ultrafast, high-bandwidth transmission, or face the constraints presented by traditional copper.
However, photonics is good for more than just AI, and space is where it is most needed. Photonics is considered very important in the development and commercialization of space, as it not only makes the necessary fast communication, but also has low weight and small size, allows for easy crafting and large payloads, is naturally resistant to interference, and is useful for remote sensing. The remote sensor has many applications, among them the guidance and positioning of expensive spacecraft and stations that are due to be built in the coming years.
Aeluma Advances Commercialization Process
It bites NASDAQ: ALMU is among the best-placed photography companies today. It advances both integrated semiconductor technology and the development of quantum dot lasers for use in photonic devices and hazardous manufacturing processes.
Aeluma Today
- 52 week interval
- $10.20
▼
$30.20
- Target Value
- $25.33
The Heterogeneous Integration Platform integrates multiple advanced packaging processes into a single platform, enabling both scalability and market-disruptive efficiencies. Catalyst 2026 includes its path to commercialization, enhanced by recent government awards.
Aeluma has received more than $4 million in government contracts, including from NASA, to develop its strategy. Revenues are expected to start growing by the end of the year, but significant gains are not expected until 2028. The opportunity for investors is to get into this stock early, before the race to acquire the property gains momentum. Momentum is expected to be built this year, to coincide with the SpaceX IPO scheduled for late spring or early summer.
SpaceX is the single largest space company, dominating the launch program, commanding a high double-digit market share, and opening the door to an influx of institutional investment in space. While Mars is still the endgame, the near-term focus has shifted to the moon base, with Starship rocket bodies serving as the starting structures. The goal is to establish a manufacturing economy based on the moon, with construction of the first base planned for sometime in 2028.
United: AI Is Driving Business, But It's Ready for Space, Too
Consistency Today
- 52 week interval
- $73.66
▼
$384.85
- The P/E ratio
- 182.00
- Target Value
- $361.88
Coherent Corp. NYSE: COHR is among the most diverse optics and imaging companies on the market, making a range of reliable, high-speed and integrated products critical to AI infrastructure.
It also produces components designed to withstand the harsh conditions of space and is positioned to benefit from the coming boom.
As it stands, the stock price is at a high, supported by rapid growth and better-than-expected guidance that may understate future strength.
Upcoming launch of Advanced Micro Devices' NASDAQ: AMD The MI450 line will unleash a second wave of data center demand, helping Coherent continue its momentum.
Lumentum Illuminates the Photographic Opportunity
Lumentum NASDAQ: LITE is another well-differentiated photo producer with a business in the space. The company manufactures a range of products for defense, aerospace, and satellite applications and is expected to grow by 2026.
Lumentum Today
- 52 week interval
- $69.26
▼
$1,073.33
- The P/E ratio
- 194.90
- Target Value
- $1,012.43
The business is supported by AI and datacenter demand, which drives revenue growth of 90% in Q3 2026 fiscal and is expected to remain strong in the coming quarters. Stock price catalysts include rising analyst sentiment and institutional buying, indicating a strong base of support and market stability.
A stock's price action reflects the strength of the tailwind and the opportunity ahead. The LITE and COHR stock market has risen by quadruple-digit percentages since mid-2026 and is likely to continue to rise.
The technology includes increasing volume and dynamic momentum, an indicator of market strength, which is unlikely to reverse course without a change in fundamentals. The only change in the fundamentals is likely to come in an increase in power, as AI workloads become more demanding and dependent on reliable, high-speed communication.
nLIGHT: Laser Focused in Defense Applications
nLight Today
- 52 week interval
- $12.08
▼
$86.95
- Target Value
- $67.81
nLIGHT NASDAQ: LASR is a laser focused imaging company in the midst of a strategic change. The company targets aerospace and defense applications, with products that offer a range of power and output sizes, allowing for a wide range of end uses.
The results in 2026 show an acceleration and the potential for further acceleration, as the demand for protection increases significantly. Of all, space will be nLIGHT's strongest driver as its semiconductor and fiber lasers are critical to a variety of space-specific applications, including advanced manufacturing of rockets and engines, and is actively designing space-specific sensor and communications products.
Analyst trends are strong for this company. While price action leads to consensus, MarketBeat's reported consensus is up more than 300% on a trailing 12-month basis, with targets at the top end providing significant upside.
The likely result is that the nLIGHT business continues to improve and sustain a virtuous cycle of revision. In this scenario, nLIGHT can easily grow into its revenue stream and continue to grow over time.
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