The AI Optical Selloff Is A Gift - 3 Stocks I'm Buying

AI optical market TAM is projected to grow at 35-40% CAGR over the next two years, driven by rapid adoption in AI data centers.

Summary - AI optical market TAM is projected to grow at 35-40% CAGR over the next two years, driven by rapid adoption in AI data centers. - Lumentum, Applied Optoelectronics, and Marvell Technologies are well-positioned AI optical stocks with attractive valuations and robust growth prospects. - Lumentum and Applied Optoelectronics offer compelling forward revenue multiples (6x and 9x, respectively), with accelerating revenues and margin expansion supporting bullish outlooks.

- Marvell commands a premium multiple but benefits from strong gross margins, strategic acquisitions, and partnerships with hyperscalers like Nvidia and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of LITE, AAOI, MRVL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions.

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