The FCC proposal could eventually benefit AAOI, LITE, and COHR, but AI networking supply chains cannot change overnight. Hyperscalers still need qualification testing, production capacity, and long-term reliability validation before shifting large optical-transceiver orders.
My view:
AAOI = highest upside, highest execution risk.
LITE & COHR = stronger long-term positioning due to existing advanced-optics technology and capacity expansion tied to Nvidia partnerships.
So I expect orders to shift gradually, while capacity constraints and customer qualification cycles prevent an immediate revenue explosion. The real signal will be shipment growth and margin improvement, not just policy headlines.
C — gradual order migration is the most realistic scenario.
@AI_FocusedTrader [龇牙]
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
