Long bull case on Western supply chain investments (photonics, AI infra). Support domestic champions like AAOI; critical US supply chain buildout for AI. Bullish on all listed tickers.
Critical infrastructure for US AI: laser fab (AAOI), semiconductors (INTC, MU, XFAB, IQE), substrates (SOI, SIVE, WOLF). Positive-sum to invest in Western supply chains vs. outsourcing to Asia. AAOI targeting $471m/month by end H1 2027. History shows outsourcing mistakes (solar sector bankruptcy).
Markets should be cheering on domestic champions like $AAOI. Since it's ideal to support critical AI infra from laser fab to production in the US, rather than being a bear. Feels like everyone just outsources transceivers to Asia like Malaysia or Thailand... With $INTC, $IQE, $XFAB, $MU, $WOLF, $SOI, $SIVE, and others... If you haven't noticed by now, they're all critical to US supply chains. And every one of them are getting subsidies for securing Western supply chains. Before a major trade was to short developing US/Western equities, then hedge with subsidized foreign ones. As seen with the energy/solar firms that went bankrupt, this backfired a lot on US AI infrastructure years later with the power grid. I wanted to help change this mindset, since I believe it's very positive sum to invest in building up critical Western supply chains like photonics today. Especially if $AAOI hits their $471m/month projections after reshoring their production to America. Instead of hoping they fail and calling critical nodes in the supply chains memestocks/bubbles, maybe it's good to change mindsets a bit so we don't see a repeat of the US Solar sector years later. US/EU don't just hand out subsidies or CHIPS act grants to anyone.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +6.5% | +6.0% |
| 1 week | +14.6% | +13.3% |
| 1 month | -11.8% | -13.4% |
| 3 months | — | — |
| 6 months | — | — |