New Stock Guru Serenity Bullish on AI Photonics Supply Chain, Names AAOI, SIVE, Foci, and Shunsin

On May 30, 'New Stock Guru' Serenity posted on social media that amidst the current wave of investment in AI photonics and data center infrastructure, its top four high-risk, high-reward stocks are AAOI, SIVE, FOCI, and Shunsin Technology. Serenity believes that AAOI is benefiting from the expansion of domestic optical module and laser production capacity in the U.S., with the company completing all manufacturing and assembly processes in the U.S. It expects revenue to reach approximately $471 million by 2027, with the market size (TAM) potentially experiencing exponential growth by 2028. Regarding SIVE, Serenity noted that the company's revenue growth prospects are also strong, with overall revenue pipeline growth of about 77% compared to historical levels, anticipated to reach around $799 million, primarily driven by its photonics business, which is expected to achieve a gross margin of 60%. Serenity also pointed out that Foci is a key supplier for NVIDIA and TSMC in the FAU (Fiber Array Unit) field and is one of the critical bottlenecks in the COUPE architecture, currently valued at approximately $2.8 billion, which is still underestimated by the market. Furthermore, it believes that Shunsin, while not widely recognized by the market, actually undertakes a significant amount of packaging and testing business related to CPO (Co-Packaged Optics) and photonics, continuously receiving orders from companies like NVIDIA, with some contracts even signed through its subsidiaries, indicating that the market has yet to fully reflect its potential value. In addition to these four companies, Serenity also listed XFAB as an alternative target, believing it could become a significant beneficiary in the future European 'Chips Act 2.0' within the silicon photonics supply chain. Additionally, it is optimistic about silicon carbide (SiC) and gallium nitride (GaN) wafer foundries benefiting from NVIDIA's push for an 800V DC data center power architecture upgrade.