Woofun AI reports that NVIDIA has monopolized EML production capacity, creating a systemic bottleneck, while simultaneously securing CW laser supply through LITE, COHR, and potential long-term agreements with MRVL and Celestial. This aggressive capacity reservation strategy has left AMD and hyperscalers including AMZN and META reacting with insufficient speed, resulting in severe supply constraints for their operations.

Concurrently, major manufacturers such as Lumentum and Coherent remain bound by existing EML contracts, leaving a scarcity of independent merchant suppliers. This supply gap has intensified competition for resources from remaining independent entities, positioning AAOI, MTSI, and SIVE as primary beneficiaries in the constrained CW laser market.