AI
Sunday, December 31, 2017 9:24:13 PM
****FNSR (T/42 DISAPPOINTMENT in 2017...TARGET FOR 2018=$25-30) ... AAPL's pre-payment of $390million is a boost in the company's standing in the fast-growing VCSEL and 3D sensing module market, which could hit $14 billion in revenue by 2020 as compared to just $1.5 billion this year. Investors, therefore, should definitely think of capitalizing on Finisar's stock price weakness this year to ride the VCSEL gravy train. https://finance.yahoo.com/news/apple-apos-millions-could-finisar-163200140.html Finisar was rumored to be in line to supply Apple with VCSEL arrays to enable the Face ID feature in the latest iPhone X, but rival Lumentum (NASDAQ: LITE) ran away with this business as Finisar reportedly had trouble meeting Apple's requirements. Not surprisingly, Lumentum is witnessing a big boost in its business thanks to the massive uptake of its 3D sensing chips by Apple. The company's revenue in the December-ended quarter could rise around 36% year over year as it reportedly got $300 million worth of 3D sensing orders from Apple since April.
Finisar's (NASDAQ: FNSR) investors got a big boost in mid-December when Apple(NASDAQ: AAPL) revealed that it is investing $390 million in the optical components specialist. The stock soared over 20% in a day after declining for the better part of the year, giving investors some respite going into the holiday period.
Finisar now has the much-needed ammunition to go after the fast-growing market for vertical-cavity surface-emitting laser (VCSEL) technology, which enables augmented reality (AR) and 3D sensing applications such as the Face ID on the iPhone X. The company has been constrained by a lack of VCSEL production capacity, so Apple's investment comes as a big boost as it sets Finisar on its way toward impressive revenue growth.
Apple is reportedly designing an iPad Pro with Face ID that could go on sale next year, and it could also include the same in the Mac. This could create a huge opportunity for Finisar as each VCSEL array reportedly costs Apple $5.
Apple could manufacture between 222 million and 252 million iPhones next year according to Mizuho, while the addition of Face ID to the iPad and Mac models would further increase its use. Finisar is expected to begin selling VCSEL chips to Apple from the second half of 2018.
Not surprisingly, analysts forecast that Finisar's top line could increase over 11% in the next fiscal year as compared to a 6.2% drop in the current one.
FSNR
Finisar's (NASDAQ: FNSR) investors got a big boost in mid-December when Apple(NASDAQ: AAPL) revealed that it is investing $390 million in the optical components specialist. The stock soared over 20% in a day after declining for the better part of the year, giving investors some respite going into the holiday period.
Finisar now has the much-needed ammunition to go after the fast-growing market for vertical-cavity surface-emitting laser (VCSEL) technology, which enables augmented reality (AR) and 3D sensing applications such as the Face ID on the iPhone X. The company has been constrained by a lack of VCSEL production capacity, so Apple's investment comes as a big boost as it sets Finisar on its way toward impressive revenue growth.
Apple is reportedly designing an iPad Pro with Face ID that could go on sale next year, and it could also include the same in the Mac. This could create a huge opportunity for Finisar as each VCSEL array reportedly costs Apple $5.
Apple could manufacture between 222 million and 252 million iPhones next year according to Mizuho, while the addition of Face ID to the iPad and Mac models would further increase its use. Finisar is expected to begin selling VCSEL chips to Apple from the second half of 2018.
Not surprisingly, analysts forecast that Finisar's top line could increase over 11% in the next fiscal year as compared to a 6.2% drop in the current one.
FSNR
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