Bubble Wrap: A Cautious Guide to Photonics Valuations

The rapid growth of AI has attracted a wave of investment into photonics, as the industry looks for ways to overcome the power and data-transfer constraints facing next-generation computing. But with so many companies, funding announcements and ambitious claims, how can investors distinguish commercial potential from hype?

Drawing on lessons from the fiber optics boom of 1999–2001, HPQC examines the risks shaping today’s photonics market. From demand and technology to customer concentration, financing and valuations, we outline the ten checks we apply when assessing early-stage companies in the sector — and why, despite the crowded landscape, our investment shortlist remains small. Read the full update here.