Serenity Defends Photonics Stocks on July 3, Says Market Mispriced Despite $1.4B Revenue Forecast

According to Serenity on July 3, photonics stocks including CPO-related equities are undervalued despite recent sharp declines, as they are backed by actual revenues unlike quantum computing peers. LITE's production capacity is sold out through 2029, while AAOI is expanding capacity with U.S.-made CW systems and is projected to generate $1.4 billion in quarterly revenue by the first half of 2027 at a current market cap of only $9.3 billion.

Serenity reiterated optimism on the optical module market, citing projections that the total addressable market could expand to $154 billion over the next two years, according to Goldman Sachs research. The firm maintained that despite short-term volatility, supply-demand fundamentals will eventually drive stock valuations higher.