GF Securities: Optical > Overall 2027 optical module demand remains unchanged, but purchasing channels are rebalancing. Some customers (like M1) are shifting from direct buys to Nvidia-bundled solutions (via New Cloud), driving up Nvidia’s procurement on their behalf. Conversely, others (like M2) are scaling back full-cluster purchases from Nvidia in favor of direct module orders. > The vast majority of 2027 orders are already locked in. In the event of a customer order cut, optical module suppliers receive a ~60% cancellation fee (covering BOM costs), and reserved raw materials can be reallocated to other customers. > Initial customer visibility for 2028 is strong, with at least one major Cloud Service Provider (CSP) projecting accelerated year-over-year demand growth. > North American CSPs are pushing aggressively for immediate shipments, with vendor-managed inventory (VMI) delays quickly cleared. Supply remains extremely tight—a top supplier's Q4 order fulfillment rate is expected to hover around ~50%. > Upstream components (such as lasers and DSPs) will remain the primary bottleneck limiting optical module shipments in 2027. While component shortages may ease slightly relative to this year, they require ongoing monitoring. $LITE $COHR $AAOI $NVDA $AVGO $MRVL