--- title: "Optical Networking Industry: Companies" description: "73 SEC filers are classified under the Standard Industrial Classification codes that describe the optical networking industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/optical-networking/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Optical Networking Industry ## Direct Answer 73 SEC filers are classified under the Standard Industrial Classification codes that describe the optical networking industry, and their latest annual reports show $553.0 billion of combined revenue and a median operating margin of -0.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Optical networking companies make the transceivers, lasers and systems that send data as light across data centers and long distances. AI clusters are lifting demand for high-speed optics, and technology transitions reset share. The first numbers to compare across companies here are revenue by speed and customer, gross margin and backlog. ## Key Industry Metrics - **Revenue by speed and customer**: Sales split by link speed and by buyer type. A move to faster optics shows adoption in AI data centers, while carriers and cloud buyers follow different spending cycles. - **Gross margin**: Revenue left after lasers, components and assembly. Newer speeds earn more at first, but price competition and yields can compress margin as products mature. - **Backlog**: Orders awaiting delivery. Backlog shows demand from large buyers ahead of revenue, though speed transitions can shift orders between product generations. - **Customer concentration**: The share of revenue from a few large cloud and carrier customers. Their orders arrive in waves, so a delay or design change can swing results. - **Capacity**: The ability to produce transceivers and lasers. Added capacity supports growth in strong demand, but it adds cost and price risk if speeds change faster than expected. ## Primary Macro Drivers - **Hyperscaler and AI data center spending**: Large cloud and AI buyers purchase transceivers by the millions, so their capital plans drive revenue by customer and backlog. - **Speed transitions to 800G and beyond**: Each move to faster links raises price per module and content per cluster, shifting revenue mix and gross margin as ramps mature. - **Carrier fiber builds**: Network operators building long-distance and access fiber buy optical systems, adding revenue less tied to cloud cycles. - **Silicon photonics adoption**: Integrating optics with chip technology cuts power and cost per bit, shifting share and design wins toward vendors that master it. ## Major Risks - **Customer concentration**: A few cloud buyers account for much of sales, so a pause or vendor change moves results; watch top-customer share and backlog. - **Price competition**: Buyers can dual-source modules and push price down as volumes grow, compressing gross margin; watch gross margin and average selling price. - **Component supply**: Lasers, chips and specialty parts may be limited, delaying shipments and raising cost; watch backlog, inventory and supplier commentary. - **Technology transitions**: A shift in module design or standard can favor rivals and strand investment; watch revenue by speed, capacity and research spending. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Medium | | Regulatory Intensity | Low | | Industry Maturity | Growth | | Geographic Importance | Global | ## Optical Networking Filers in the SEC Record 73 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3661, 3669, 3674. Their latest fiscal years end between 2024 and 2026, and together they reported $553.0 billion of revenue. Median revenue growth over the prior year was 19.3%. Median operating margin was -0.1% and median net margin -1.8%. Median total liabilities were 36% of total assets, and 32 of 73 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Nvidia Corp](https://www.getswoopr.com/stocks/companies/nvidia/) | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 | | [Broadcom Inc.](https://www.getswoopr.com/stocks/companies/broadcom/) | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 | | [Intel Corp](https://www.getswoopr.com/stocks/companies/intel/) | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 | | [Micron Technology Inc](https://www.getswoopr.com/stocks/companies/micron-technology/) | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 | | [Advanced Micro Devices Inc](https://www.getswoopr.com/stocks/companies/advanced-micro-devices/) | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 | | [Applied Materials Inc](https://www.getswoopr.com/stocks/companies/applied-materials/) | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 | | [Texas Instruments Inc](https://www.getswoopr.com/stocks/companies/texas-instruments/) | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 | | [Nxp Semiconductors N.V.](https://www.getswoopr.com/stocks/companies/nxp-semiconductors/) | $12.3 billion | -2.7% | 24.8% | 16.5% | FY 2025 | The 8 largest of 73 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Optical Networking guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Information Technology - [Information Technology sector overview](https://www.getswoopr.com/stocks/industries/information-technology/) - [Optoelectronics](https://www.getswoopr.com/stocks/industries/information-technology/optoelectronics/) - [Observability Software](https://www.getswoopr.com/stocks/industries/information-technology/observability-software/) - [Personal Computers](https://www.getswoopr.com/stocks/industries/information-technology/personal-computers/) - [Networking Equipment](https://www.getswoopr.com/stocks/industries/information-technology/networking-equipment/) - [Photomasks & Reticles](https://www.getswoopr.com/stocks/industries/information-technology/photomasks-and-reticles/) - [Network Security](https://www.getswoopr.com/stocks/industries/information-technology/network-security/) - [Photonics](https://www.getswoopr.com/stocks/industries/information-technology/photonics/) - [MLOps Platforms](https://www.getswoopr.com/stocks/industries/information-technology/mlops-platforms/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Optical Networking industry? Key performance indicators for the Optical Networking industry include: Revenue by speed and customer, Gross margin, Backlog, Customer concentration, Capacity. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Optical Networking industry? The Optical Networking industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Optical Networking industry? The primary risks for Optical Networking companies include: Customer concentration, Price competition, Component supply, Technology transitions. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).