Photonics is the science and technology of using light (photons) for practical applications – it does for light what electronics does for electrons. The importance of photonics is hard to overstate: it underpins modern telecom networks, high-speed internet, smartphone displays, industrial lasers, and much more. But the real story here is that it’s beginning to enable new, cutting-edge use cases in quantum computers and directed-energy weapons. Today, a confluence of catalysts is accelerating photonics growth:
- Exploding Data & AI Workloads: The rise of AI and cloud computing has created massive demand for faster, more efficient data transfer. Electrical interconnects (copper wires) are hitting their limits in data centers. Silicon photonics – integrating laser-based optical communication directly on silicon chips – offers a way to move data at light-speed with lower power use. AI data centers are expected to grow at ~50% annually through 2030. This would push data centers to consume 8% of U.S. power by decade’s end (up from 3% today) – a trajectory deemed unsustainable without silicon photonics.
- Quantum Tech and Ultra-Fast Computing: Photonics is also at the heart of the quantum computing race and next-gen secure communications. The industry’s potential is enormous – quantum computing is expected to generate north of $1 trillion in economic value over the next decade – and photonic methods (like optical qubits or quantum key distribution) are strong contenders to achieve that.
- Defense and Aerospace Applications: Light-based technologies are revolutionizing defense with directed-energy weapons, LIDAR sensors, and advanced optical systems. Not long ago, laser weapons seemed like sci-fi; now they are entering real defense budgets. The U.S. Army recently field-tested a 50 kW laser on a Stryker vehicle to shoot down drones, and contracts are underway to scale these to 300+ kW and eventually megawatt-class systems for missile defense.
Overall, the thesis here is that we are entering an era where photons will carry more and more of the computational and industrial workload. The silicon photonics market, as one example, is projected to quadruple in the second half of this decade, from ~$2.7 billion in 2025 to ~$9.6 billion by 2030 at ~29% CAGR. In this report, we highlight the top photonics stocks to watch in 2025—curated for their pure-play exposure to the high-growth sectors of Silicon Photonics, Quantum Photonics, and Defense Photonics.
Silicon Photonics & Optical Interconnects
Silicon Photonics companies focus on integrating photonic components (lasers, modulators, etc.) into silicon-based chips for ultra-fast data transfer. These firms are driving the replacement of copper wires with optical links, which is vital for scaling cloud and AI systems. Many of these companies can be considered pure-play photonics stocks – much of their revenue comes from optical transceivers, photonic integrated circuits (PICs), or related equipment.
Aeluma, Inc. (NASDAQ: ALMU)
HQ: USA; Pioneering the integration of quantum dot lasers onto silicon photonic circuits.
Aeluma is a cutting-edge startup in the silicon photonics arena with a unique twist – it’s integrating quantum dot laser technology onto silicon chips. Today, many silicon photonic systems still require attaching an external laser source, which adds cost and complexity. Aeluma’s approach aims to embed the laser directly in the silicon photonic die using quantum dot materials. This would be a game-changer for making photonic integrated circuits more scalable and efficient. The company has already attracted high-profile interest: NASA awarded Aeluma a contract to support next-gen space communications and sensing. Aeluma’s tech could enable faster, more rugged optical links for satellites, deep space probes, and LiDAR in autonomous systems.
Aeluma is an early mover in a potentially revolutionary photonics technology. If it succeeds, it could license its tech or partner with big chip makers. The company is still small, but it’s showing strong progress, and could very well be the “next big thing” in photonics. However, Aeluma operates in a field where a lot of R&D is happening; it’s possible a larger competitor could leapfrog them in quantum dot laser integration. This is an exciting technology, but it’s not yet proven as a standalone business.
Lightwave Logic (NASDAQ: LWLG)
HQ: USA; Polymer-based electro-optic modulators for ultrafast optical networks.
Lightwave Logic is a pure-play photonics R&D company tackling one of the key performance bottlenecks in fiber-optic communications: the speed and efficiency of modulators. Modulators are devices that encode data onto light by blinking a laser on/off at high speeds. Lightwave’s innovation is a new class of organic polymer materials that can modulate light far faster and with lower power than incumbent technologies (like silicon or lithium-niobate modulators). These polymer modulators could enable ultra-high data rates—800G, 1.6T and beyond—with far less heat, a highly attractive value proposition for AI data centers that are straining to move mountains of data. It’s a classic emerging tech story. In an upside case, Lightwave Logic’s polymer modulators could be licensed or sold into every high-speed transceiver out there – a huge market.
The thesis here is that this small company could have “Intel Inside”-style technology for the photonics world – an ingredient that many bigger players might need. Lightwave Logic has already delivered impressive lab results and patents, but the company is still largely pre-revenue and in the research to commercialization phase. While LWLG’s tech idea is compelling, getting major manufacturers to redesign optical transceivers around a new polymer modulator (and prove it’s stable over years) is still a big hurdle.
POET Technologies (NASDAQ: POET)
HQ: Canada; Novel photonics platform that fuses lasers and electronics in one step.
POET is a smaller-cap, pure-play silicon photonics stock. The company has developed a proprietary Optical Interposer platform, which integrates lasers, detectors, and electronic circuits all on a single chip-level module. This design could slash the cost and power consumption of optical transceivers used in data centers and telecom. POET’s technology aims to eliminate many of the traditional assembly steps. Rather than individually wiring components, Optical Interposer has them all “printed” together. The company has started sampling 100G/200G/400G fiber links and has a joint venture in Asia for manufacturing. If POET secures design wins with big network gear makers or cloud providers, it could scale up revenue quickly from a small base.
POET offers pure-play exposure to silicon photonics adoption in AI and 5G. In 2025, the company is transitioning from R&D to revenue, reporting its first meaningful sales and multiple design wins. Of course, there’s always the risk that its optical interposer never sees broad adoption. If a larger competitor develops an alternative or if customers stick to incumbent suppliers, the stock will stall. POET is a focused high-risk/high-reward bet on “optical interconnect” megatrend.
Lumentum Holdings (NASDAQ: LITE)
HQ: USA; Optical transceivers and lasers for high-speed cloud networking and 3D sensing.
Lumentum is a leading maker of photonic components used in data center fiber-optics, telecom networks, and smartphone FaceID sensors. Its lasers and photonic chips are critical enablers for hyper-scale cloud computing, 5G telecom, and even AR/VR sensors. For instance, Lumentum has helped companies like Microsoft, Google, and telecom carriers transmit data at 100G+ speeds through fiber. They’re also a top supplier of 3D sensing lasers (VCSELs) used in devices like the iPhone for Face ID and LiDAR. As data centers upgrade to 400G and 800G links—driven by AI and video growth—Lumentum can sell the high-performance photonic components those upgrades require. The company has a track record of innovation in integrating lasers on silicon photonics and developing new optical switching solutions for AI supercomputers.
Lumentum serves as a “picks-and-shovels” supplier in optical networking. It’s already profitable and generates substantial cash, which it uses for R&D and acquisitions (e.g., NeoPhotonics). However, a key risk is customer concentration and cyclicality. A large portion of Lumentum’s revenue comes from a few big tech and telecom clients, and from Apple’s 3D sensing orders. If a major customer reduces orders, Lumentum’s sales can swing sharply.
Fabrinet (NYSE: FN)
HQ: Thailand (operational); Go-to manufacturer of optical and photonic components.
Fabrinet is the behind-the-scenes manufacturer for many top photonics companies, assembling lasers, lenses, and optical modules at scale. Rather than selling its own photonic products, Fabrinet is the go-to contract manufacturer for many photonics and optical tech firms. Big names in telecom equipment, datacenter optics, and laser technology outsource the complex assembly of optical modules and precision photonic devices to Fabrinet. This gives Fabrinet broad exposure to the entire photonics ecosystem – from silicon photonics transceivers for data centers, to LIDAR units for autonomous vehicles, to medical laser equipment – without betting on a single product’s success. As demand surges for those devices, Fabrinet’s factories stay busy. Its manufacturing plant’s location, Thailand, is also a key advantage: lower cost and geopolitically neutral.
For investors, Fabrinet offers a profitable, steady way to ride photonics adoption. It’s less about moonshot technology and more about volume growth in optical hardware. As more companies design photonic chips and sensors, many—including other photonics stocks on this list—will rely on Fabrinet to build them. On the flipside, orders can soften if telecom/cloud CAPEX slows, as Fabrinet doesn’t control end-market demand.
Quantum Photonics & Optical Computing
Quantum Photonics companies leverage photonic technologies for quantum computing, communication, and sensing. This includes firms building quantum computers that use lasers or photons, as well as those creating photonic chips or quantum sensors. These photonics stocks tend to be more speculative (many are pre-profit), but offer unique access to its intersection with quantum tech – using light particles to unlock computing power far beyond classical limits or to enable fundamentally secure communication.
IonQ, Inc. (NYSE: IONQ)
HQ: USA; Quantum computers driven by trapped ions and laser-based logic gates.
IonQ has quickly become a leader in the nascent quantum industry. While IonQ’s approach is trapped-ion quantum computing, it’s fundamentally enabled by photonics: lasers cool the ions and perform quantum gate operations using photons. The result is one of the best-performing quantum computers currently available, with IonQ reporting industry-leading qubit fidelity and launching systems accessible via the cloud. For investors, IonQ represents a two-fold opportunity: (1) exposure to broader quantum computing growth and (2) a play on photonics innovation within quantum. IonQ has strong backing—including partnerships with AWS and Microsoft Azure—and a roadmap to scale its systems’ qubit count significantly over the next few years. If quantum computing achieves even a fraction of its promise of solving complex problems in drug discovery, cryptography, and optimization, IonQ stands to benefit as one of the few commercial hardware providers. The company has already delivered quantum systems to government and enterprise customers and has reported rapidly growing bookings. Its relatively large market cap reflects high expectations.
In essence, IonQ is a bet on quantum computing’s potential “iPhone moment,” with photonics as a key differentiator. However, despite all the excitement, remember that quantum computing is still in a very early, experimental phase. IonQ’s machines, while among the best, have a limited number of qubits and can only tackle certain problems. There’s still significant technical risk in scaling up quantum computers – issues like error rates, decoherence, and the engineering challenges of bigger systems.
Quantum Computing, Inc. (NASDAQ: QUBT)
HQ: USA; Photonic quantum computing hardware using integrated optical chips.
Quantum Computing Inc. (QCI), despite its generic name, is actually a unique story: it has pivoted to focus on photonic quantum technology that can potentially deliver quantum advantages without needing ultra-cold temperatures or exotic infrastructure. QCI acquired a startup (QPhoton) and since then has been building out a photonic quantum computing solution. It even opened a dedicated photonic chip foundry in Arizona for this purpose. The company’s goal is to produce affordable, room-temperature quantum machines that use lasers and non-linear optical materials (like certain crystals) to solve computational tasks. In 2024–2025, QCI has touted prototypes of its photonic quantum computing devices and even reported early revenue from pilot customers.
QUBT is a highly speculative, moonshot photonics stock. Unlike competitors’ tech that require complex cryogenics, QCI’s tech (if it works as hoped) might be deployed more easily for government or enterprise use. This means it can leapfrog many logistics hurdles to scaling that other quantum first face. The company has also ventured into related areas, such as quantum-derived lidar sensors and imaging. However, as with IonQ, the tech is still early and competition is fierce.
Hamamatsu Photonics (TYO: 6965)
HQ: Japan; Specialty photonic components used in science, industry, and quantum.
Hamamatsu Photonics is a hidden gem in the photonics world – not always front-of-mind for U.S. investors, but a critical supplier of the “nuts and bolts” that enable cutting-edge photonic and quantum technologies. With decades of expertise, Hamamatsu’s components are ubiquitous in research labs: if a scientist is detecting single photons in a quantum experiment or building a quantum cryptography system, chances are they’re using Hamamatsu photomultiplier tubes or silicon APD detectors. The company also makes ultra-stable lasers, optical sensors for medical imaging, and imaging cameras. This breadth means Hamamatsu benefits from multiple photonics-driven trends. For instance, the growth of quantum cryptography and quantum sensing is increasing demand for its single-photon detectors and specialized lasers. Hamamatsu even acquired NKT Photonics (a Danish maker of ultrafast lasers and fiber optics) in 2024, strengthening its portfolio for quantum and defense photonics.
Compared to other photonics stocks, Hamamatsu offers a mix of stability and thematic exposure. It’s a profitable, well-established firm with consistent revenue. Yet it also has upside from emerging fields like quantum tech, optical computing, and LIDAR—all of which rely on the kind of components Hamamatsu excels at. Do note that some of Hamamatsu’s business lines are in mature markets (e.g., making sensors for copiers or standard medical equipment). In the scenario of a quantum photonics boom, the company’s overall growth would be slower than a pure quantum-focused startup.
Defense Photonics & Directed Energy Lasers
Defense Photonics companies develop and supply photonic technologies with military and aerospace applications. This includes high-power lasers (for weapons or targeting), advanced optical sensors (night vision, LIDAR, rangefinders), and other electro-optical systems used in defense. Many also have commercial markets (industrial lasers, scientific instruments), but a large portion of their business is tied to defense contracts, giving them high thematic purity as defense photonics stocks.
IPG Photonics (NASDAQ: IPGP)
HQ: USA; High-power fiber lasers used in industry and directed-energy weapons.
IPG Photonics is a pioneer of fiber lasers, and it has essentially created and dominated that market for years. Fiber lasers are optical devices that generate intense laser beams through fiber-optic cables doped with specialty materials, and they have huge advantages in efficiency and beam quality. IPG’s lasers transformed manufacturing—replacing traditional tools for cutting and welding—but now they are also at the heart of many defense laser prototypes. In fact, an IPG-equipped system was the first to shoot down a UAV with a laser. As militaries fund more high-energy laser programs, IPG stands to gain by supplying the laser “engines” for those systems. At the same time, its core industrial business provides steady revenue, and any uptick in manufacturing automation can boost laser demand.
Among photonics stocks, IPG offers a balanced play: it’s profitable, with a large share of a stable industrial lasers market, yet it has upside optionality in defense photonics. Even modest defense contract wins for a handful of Army or Navy systems can be material, since these are high-priced units. However, in defense contracting, timelines can be slow and unpredictable – it’s possible that big laser weapon deployments are always “five years away.” If defense budgets shift, anticipated revenue might not materialize.
Coherent Corp. (NYSE: COHR)
HQ: USA; Broad portfolio of lasers and materials for defense and communications.
Coherent Corp. is a photonic powerhouse formed by the merger of II-VI and the former Coherent Inc. This created a one-stop shop for a vast array of photonics products. On the defense photonics front, Coherent supplies many critical items: high-power laser diodes and gain media for directed-energy weapons, advanced infrared optical components (think missile-guidance domes, night-vision lenses), and even laser communications gear for aerospace. If a defense contractor is building a laser weapon or an optical sensor, Coherent is likely either a supplier or a collaborator. Beyond defense, Coherent is also big in 5G and data center optics (it’s actually a leader in optical transceivers via the Finisar heritage) and in industrial lasers. This diversification means Coherent can benefit from multiple photonics-driven trends at once.
Coherent offers the scale of a larger company—multi-billion revenue, global footprint—with the focused exposure of a photonics pure-play. After the merger, the company has been streamlining and seeking growth in high-value areas like compound semiconductors and EUV lithography components, alongside lasers. Coherent is a way to invest in defense photonics at scale; you’re buying a piece of the entire photonic supply chain, from materials to finished laser systems.
nLIGHT, Inc. (NASDAQ: LASR)
HQ: USA; High-power semiconductor and fiber lasers for defense and industry.
nLIGHT is pure-play defense photonics stock punching above its weight when it comes to landing military laser contracts. The company specializes in high-power laser diodes and fiber laser systems, much like IPG, but nLIGHT has carved a niche in working closely with DoD programs. For instance, nLIGHT was awarded a multi-year contract (totaling over $170 million when fully expanded) under the U.S. Army’s High Energy Laser Scaling Initiative to develop a 1 megawatt class laser – an astonishing power level aimed at missile defense. They’ve also won deals to supply ~50 kW lasers for anti-drone “laser fence” systems on Stryker vehicles. These wins validate nLIGHT’s technology and put it at the forefront of deployed directed-energy weapons. Even outside weaponry, nLIGHT’s laser expertise has uses in aerospace—satellite laser communications, for example.
For investors bullish on the idea that “every platoon will have a laser,” nLIGHT is a focused way to express that view. Its commercial business (laser cutters, etc.) is smaller than IPG’s, so a larger portion of its value is tied to defense growth. If militaries worldwide start fielding laser weapons in significant numbers, nLIGHT could see outsized growth. That’s also a double-edged sword, though, as a contract delay or cancellation would also sting in an outsized way.
LightPath Technologies (NASDAQ: LPTH)
HQ: USA; Infrared and thermal imaging for defense and industrial markets.
LightPath is a micro-cap company that plays an outsized role in the defense electro-optical supply chain. The company makes specialized lenses and cameras that see in the infrared – crucial for military gear like night vision systems, thermal weapon sights, and infrared countermeasures. LightPath has steadily moved up the value chain: beyond just lenses, it now offers complete thermal camera cores and assemblies. A tangible example of their work: LightPath recently secured multi-million dollar orders to supply infrared optical assemblies for the US Navy’s new shipboard surveillance systems and for European defense programs. These wins show that LightPath’s components meet stringent military specs and that prime contractors trust them.
The investment thesis for LightPath is that it is a direct beneficiary of the global upgrade cycle in night vision and thermal imaging. Whether it’s soldiers getting improved goggles, aircraft getting advanced IR sensors, or security and firefighting uses, IR photonics is a steady growth area. LightPath, being one of few U.S. suppliers in this niche, could see more contracts as Western governments emphasize secure supply chains for key tech.
Lumibird SA (EPA: LBIRD)
HQ: France; Laser systems for defense and aerospace.
Lumibird is a European leader in solid-state lasers – it makes laser rangefinders, target designators, and LIDAR systems for fighter jets, armored vehicles, and other defense platforms. For example, Lumibird’s compact lasers are used in fire-control systems to measure target distance in an instant (critical for tank gunners and anti-aircraft units). The firm made a splash by acquiring Saab’s laser rangefinder business in 2022, which instantly gave it an install base on platforms like the Gripen fighter and various NATO land vehicles. Now Lumibird is winning new contracts, such as providing its “VIDAR” laser rangefinders for Rheinmetall’s Skyranger air defense turrets to help shoot down drones. In essence, Lumibird’s lasers are becoming standard in many European defense systems. Outside defense, Lumibird has stable businesses in scientific lasers and medical lasers.
Lumibird is a compelling pick for those looking at the laser boom in defense, especially in NATO countries. It’s a rare non-U.S. defense photonics stock, one that could benefit from increased European defense spending. If European armies continue to equip modern armored vehicles and anti-drone systems with Lumibird’s products, the growth outlook is strong. It’s a niche player but with global reach – and a high degree of specialization that can protect its margins.