BlockBeats News, May 29th, the "Stock God" Serenity posted, stating that although Applied Optoelectronics (AAOI) has reached a market capitalization of about $13 billion, compared to when it was at a $2 billion or $6 billion market cap, Serenity is now even more bullish.

It believes that the recent expansion of AI infrastructure has led to a laser diode supply bottleneck, strengthening AAOI's long-term value. The market has also overlooked analysts' expectations of AAOI potentially signing long-term supply agreements with NVIDIA or AMD.

Serenity pointed out that if AAOI's revenue forecast for the first half of 2027 reaches $471 million, this would imply an "extremely exaggerated production capacity ramp-up speed." However, Serenity also acknowledged that the company's current $600 million ATM financing plan poses a short-term suppressive factor.

Serenity stated that AAOI's current core issue is no longer demand but "how much the company can actually produce," and referred to it as their currently most favored U.S. photonic multi-head target.