I’m long $M7U
$M7U - Nynomic is one of the most compelling names in the CPO buildout. They make the tools that make those lasers possible.
Nynomic is the parent company of LayTec. And LayTec is the quality control system sitting inside every major Western InP laser reactor on the planet.
CPO – co-packaged optics – is the next architectural leap for AI datacenters. Instead of pluggable transceivers on the edge of a switch, lasers get integrated directly onto the chip package.
Broadcom and NVIDIA are both expected to ship CPO-integrated scale-up platforms in 2027. The combined CPO and NPO module market is forecast to reach $5.5 billion by 2027.
Every single one of those CPO lasers is grown on an InP MOCVD reactor. And inside every advanced Aixtron MOCVD reactor sits up to seven LayTec metrology heads measuring in real time whether the epitaxy is growing correctly.
You cannot remove LayTec without requalifying the entire reactor from scratch.
The G10-AsP is the confirmed tool of record at Lumentum, Coherent, Nokia, SMART Photonics, and VPEC.
Lumentum’s ultra-high-power CPO lasers operate at up to 350mW at 50°C, power-conversion efficiency above 20%, narrow linewidth below 500kHz. These are extreme precision specs that demand tighter epitaxy control than standard transceiver lasers. Tighter epitaxy control means more metrology.
Every InP fab that wants to compete for CPO design wins needs new reactors qualified to CPO laser specs. Each new reactor ships with LayTec inside.
The pluggable boom is today’s order book. CPO is 2027’s order book. LayTec gets both.
Lumentum confirmed this week that their CPO laser ramp is on schedule toward a multi-hundred million dollar purchase order in H1 2027.
That ramp runs through Aixtron reactors. Those reactors run LayTec.
LayTec is just one of ten companies under the $M7U umbrella. tec5 sells spectrometers into Onto Innovation, which serves TSMC, Samsung, and Intel. Avantes ranks second globally in fibre-optic spectrometers behind Halma.
Sensortherm builds the fastest pyrometers in the world for metal 3D printing, riding the AI data centre gas turbine wave. art photonics manufactures mid-infrared optical fibres, one of only a handful of companies that can. NLIR converts infrared light into visible signals at 130,000 spectra per second, a category-defining technology for plastic recycling and pharma.
Add it all up at conservative multiples and you get ~€200M of value. Current market cap is ~€132M. Buy the rest of the photonics empire, get LayTec for nothing.
The discovery hasn’t really happened yet