$Fabrinet(FN)$ Basically the factory floor for $NVIDIA(NVDA)$ , $Lumentum(LITE)$ , and COHR. No matter who wins the AI optics race, the money still flows through their assembly lines. A debt-free monopoly growing 40% a year at around 17.5x forward P/E after this washout looks like a gift ahead of the Nov 2 earnings.
$Lumentum(LITE)$ WDC beat and raised guidance, but the stock is getting hit over product-related questions. This kind of noise probably won't be an issue when LITE reports in two weeks.
$Lumentum(LITE)$ All they need is one solid catalyst and this could rip to $1300+ imho. With the $NVIDIA(NVDA)$ $2B investment, something might come out soon.
The AI boom is real. I work in the semiconductor industry as a contractor for the two biggest OEM manufacturers. The demand is real. It will triple over the next 3 years. This is public information. Recently, the CEO of $Lumentum(LITE)$ confirmed that his company's capacity is sold out until the end of 2028. A lot of data centers are being built to support AI. $CoreWeave, Inc.(CRWV)$ is at the forefront of this buildup. These data centers are crucial for keeping an edge in AI infrastructure. For $CoreWeave, Inc.(CRWV)$ , the debt is very manageable. It has more than $100B in contracts and counting.
$Lumentum(LITE)$ In small, the reversal looks notable so far, up $66 from the morning lows. Going from red to green next, and a squeeze could potentially trigger.
$Lumentum(LITE)$ AI trading isn't going to change the long-term picture for photonics and computing. No reason to be concerned here. This still looks like a hidden gem.
$Lumentum(LITE)$ $SanDisk Corp.(SNDK)$ has been moving in a similar way on volatility, and the same AI supply-demand imbalance seems to be behind it. LITE is about half the size of SNDK, so I'd expect even larger price swings once it starts getting market attention.