The AI trade right now is keying in on one piece of the puzzle – optoelectronics. And two great optoelectronics companies are oversold right now.
Ciena and Applied Optoelectronics fell 49–53% despite beating earnings; optoelectronics addresses critical AI data-transmission bottleneck. For tech leaders: valuations compressed on essential AI infrastructure while institutions accumulate—temporary correction, not decline.
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But first, what's optoelectronics?
Computers speak in electrons. Fiber in fiber optic cable speaks photons. Connect the two and that's optoelectronics.
Lasers provide the light and modulators encode digital information to be transmitted:
Optoelectronics technology is efficient and solving a data transmission problem that's been an AI bottleneck recently.
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