Quick Read – Applied Optoelectronics surged 6% after breaking ground on a 400,000 sq. ft.
Texas transceiver campus, dragging Lumentum up 5% in sympathy. – NVIDIA’s $2 billion investment in Coherent and its Texas indium phosphide ramp give the AI-optics trade a second anchor beyond AAOI. – AAOI is up 221% YTD with an 84x forward P/E and beta of 3.69, yet analysts still set their target at $151, which remains above Tuesday’s share price. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn’t make the cut
Grab the names FREE today. Shares of Applied Optoelectronics (NASDAQ:AAOI) jumped 6% to $119.10 in early trading Tuesday, rebounding from a rough Monday session on fresh news of a major Texas manufacturing expansion. Shares of Lumentum (NASDAQ:LITE) also climbed as the AI optics trade caught a fresh bid while Coherent (NYSE:COHR) stock rose slightly.
Lumentum stock added 5% to $806.81, while Coherent stock moved 1% higher to $310.11. The broader tape is helping somewhat: a cooler-than-expected June Consumer Price Index (CPI) reading pushed the NASDAQ 100 higher and reopened risk appetite in high-beta AI hardware names. Applied Optoelectronics is the ticker with the actual news.