Photonics momentum is still strong, even with underperformance in names like $Applied Optoelectronics(AAOI)$ and NOK. $Corning(GLW)$ 's recent price action better demonstrates the sector's actual technical strength. I'm focusing on quality setups.
$SpaceX(SPCX)$ Even dropping to 135 or 125 still puts SpaceX at an extremely high valuation. At such a young stage in the company's story, that's very doable.
$Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ Congratulations to those who bought near yesterday's solid bottom. The opportunity was there for those paying attention, and the setup was clear. Without diving into all the technicals, I'd say it might not be too late to consider a position. The move likely just started, and the upside still looks significant. Patience is key.
$Applied Optoelectronics(AAOI)$ Evercore just raised CRDO's price target to $325, citing their shift from copper cables to optical interconnect. Copper is on the way out, so this move is critical for CRDO. However, I believe AAOI is much better positioned to benefit from optical interconnect, as they recognized the need and began expanding long ago. CRDO has a TTM revenue of $1.34B ($7.48 per share), a P/S ratio of over 38, and a market cap of $56B. CRDO's projected revenue for 2027 is $3.58B ($19.2 per share). Now look at AAOI, with an expected 2026 revenue of $1B ($12.34 per share), giving it a P/S ratio of 12.8. AAOI's currently projected 2027 revenue is $2.57B ($31.7 per share), which is 65% higher than CRD
$Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ Long holiday weekends often see some wild price action before the break. My guess is it's market makers trying to shake out some weak hands. Two catalysts are still pending: end-of-Q2 window dressing and Micron earnings next week. However, today's move was so extreme, I wouldn't be surprised at all if that marked a blow-off top for semis.
Positioning for an aggressive beta rotation into AI memory, photonics, and next-gen infrastructure. Some names are showing asymmetric setups after heavy consolidation; it's not the early discovery phase anymore, it's the execution phase now. $SanDisk Corp.(SNDK)$ / KIOXIA - leverage on the memory cycle $NEBIUS(NBIS)$ - AI infrastructure re-rating story $Applied Optoelectronics(AAOI)$ - photonics momentum proxy $Aehr Test(AEHR)$ - semiconductor equipment volatility squeeze Smaller EU small caps are still on the radar: IQE $Silver Verde May Mining Co., Inc.(SIV