POET Technologies and other photonics stocks rose in overnight trading. This movement follows Alphabet’s announcement of a significant capital expenditure increase for 2026.
Alphabet reported a 100% year-over-year increase in CapEx for the June quarter. The company also raised its full-year spending forecast to accelerate AI infrastructure and data center expansion.
Heightened spending by major hyperscalers signals growing demand for optical components. POET develops optical interposer platforms designed to enhance AI optical modules.
Investors now view the optical connectivity sector as a critical element in the development of next-generation AI data centers.