Jul. 13 at 4:25 PM
Here is why I bought more
$AAOI and keep DCA every week.
Many are focused on the drop from
$223 to around
$113 and assume the trend is broken. I see a different picture.
While sentiment stays weak, the long-term AI optical networking thesis remains intact. Recent insider sales were largely tax-related vesting transactions, not aggressive selling. Meanwhile, delayed CPO adoption extends the runway for high-speed pluggable optics and LPO, where
$AAOI continues expanding production capacity.
If execution stays on track, higher shipment volumes, improving margins, and stronger cash flow could become the next catalyst. Add diversified broadband and enterprise demand, and the long-term setup still looks attractive despite short-term volatility.
We've seen
$AAOI build a base before major recoveries. I prefer accumulating during fear rather than chasing momentum.
Also watching:
$LITE $COHR $CIEN.
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