Before the Moon Base Gets Built, These 4 Companies Win

Key Points

• Datacenters drive photonic demand today, but space could sustain it long term.
• Photonics is critical to the development of space industries.
• The SpaceX IPO will unleash investment in space stocks, including photonic companies.

Photonics is critical to AI, with data centers the primary driver of business in 2026. The vast amounts of data require ultrafast, high-bandwidth transmission, or else face the bottlenecks presented by traditional copper.

However, photonics is good for more than just AI, and space is the place where it is needed most. Photonics is viewed as absolutely critical for the development and commercialization of space, as it enables not only the ultra-fast communication required, but also is low-weight and smaller in size, enabling lighter craft and larger payloads, is naturally resistant to interference, and is useful for remote sensing. Remote sensing has many applications, among them the maneuvering and docking of ultra-expensive spacecraft and stations on track for construction in upcoming years.

Aeluma Advances Commercialization Process

Aeluma NASDAQ: ALMU is among the best-positioned photonics companies today. It is advancing both compound semiconductor technology and the development of quantum dot lasers to power photonic devices and scalable manufacturing processes.

Its Heterogeneous Integration Platform combines numerous advanced copackaging processes into a single platform, enabling both scale and efficiency that can disrupt the market. Catalysts in 2026 include its path to commercialization, which was amplified by recent government awards.

Aeluma has secured more than $4 million in government contracts, including from NASA, to advance its strategy. Revenue is expected to begin growing by year’s end, but significant gains are not expected until 2028. The opportunity for investors is getting into this stock early, before the race for space gains momentum. Momentum is expected to build this year, coinciding with the SpaceX IPO slated for late spring or early summer.

SpaceX is the single largest space company, dominating the launch schedule, commanding a high-double-digit market share, and opening the door to an influx of institutional investment in space. While Mars remains the endgame, the near-term focus has shifted to a moon base, with Starship rocket bodies serving as the initial structures. The goal is to establish a moon-based manufacturing economy, with initial base construction planned for sometime in 2028.

Coherent: AI Drives Business, But Good for Space, Too

Coherent Corp. NYSE: COHR is among the most diversified optics and photonics companies on the market, making a range of reliable, high-speed and copackaged products critical for AI infrastructure.

It also manufactures components made to withstand the harsh conditions of space and is positioned to benefit from the upcoming boom.

As it stands, the stock price is in an uptrend, supported by accelerating growth and better-than-expected guidance that likely underestimates future strength.

\The upcoming launch of Advanced Micro Devices’ NASDAQ: AMD MI450 line will unleash a second wave of data center demand, helping Coherent sustain its momentum.

Lumentum Lights Up the Photonic Opportunity

Lumentum NASDAQ: LITE is another well-diversified photonic manufacturer with business in space. The company produces a range of products for defense, aerospace, and satellite applications and is expected to grow in 2026.

The business is underpinned by AI and datacenter demand, driving revenue acceleration to 90% in fiscal Q3 2026 and expected to remain strong in upcoming quarters. Catalysts for the stock price include an uptrend in analysts' sentiment and institutional buying, which indicate a strong support base and a market tailwind.

The stock price action reflects the strength of the tailwind and opportunity ahead. The market for LITE and COHR stock is up by quadruple-digit percentages as of mid-2026 and is likely to continue rising.

The technicals include rising volume and convergent momentum, an indication of a strengthening market, unlikely to reverse course without a change in fundamentals. The only change in fundamentals likely to come is an increase in strength, as AI workloads become more intense and reliant on reliable, high-speed communications.

nLIGHT: Laser Focused on Defense Applications

nLIGHT NASDAQ: LASR is a laser-focused photonics company amid a strategic shift. The company targets aerospace and defense applications, with products providing a range of power and output sizes, enabling a wide range of end uses.

Results in 2026 reveal acceleration and the potential for additional acceleration, as defense demand ramps higher. Of them all, space will be the strongest catalyst for nLIGHT as its semiconductor and fiber lasers are critical to a variety of space-specific applications, including advanced manufacturing of rockets and engines, and actively designs space-specific sensing and communications products.

Analyst trends are robust for this company. Although the price action is leading the consensus, MarketBeat’s reported consensus increased by more than 300% on a trailing 12-month basis, with high-end targets offering substantial upside.

The likely outcome is that nLIGHT’s business continues to improve and sustain the positive revision cycle. In this scenario, nLIGHT can easily grow into its earnings outlook and sustain an uptrend over time.