Serenity: Optical Module Sector Decline Driven by Algorithmic Selling; Long-Term Outlook Remains Positive

Huo Xing Finance reports that on June 1, "New Stock God" Serenity posted that the current decline in the photonics sector is primarily driven by algorithmic trading following the leader. Looking at the stock performance of companies related to lasers and optical modules such as AAOI and Sivers, market sentiment is largely influenced by the movement of Coherent (LITE), rather than changes in individual company fundamentals. Serenity noted that although some companies continue to improve their fundamentals—for example, Applied Optoelectronics (AAOI) has made progress in its business with clients like AMD and NVIDIA—their high beta characteristics make them more vulnerable to programmatic selling during industry corrections. Serenity also revealed that Sivers may announce additional partnerships with optical module customers in the future. Serenity advised against engaging in short-term trading of these stocks amid 20%-30% volatility, and instead favors long-term holding of core beneficiaries within the photonics industry, given their optimistic outlook on the industry’s exponentially growing total addressable market (TAM).