TechFlow News, May 30: Renowned investor Serenity stated that, against the backdrop of ongoing expansion in AI photonics and data center infrastructure, AAOI, SIVE, FOCI, and Shunsin Technology are his current top high-risk, high-reward investment picks. He also expressed optimism about the future growth potential of the silicon photonics and advanced packaging industry chain.
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Investor Serenity shared his latest views on the AI photonics industry chain via a social media platform, noting that enterprises engaged in optical communications and silicon photonics are entering a new phase of opportunity, driven by rising AI compute demand and data center infrastructure upgrades.
Regarding optical module manufacturer AAOI, Serenity holds a positive outlook, noting that the company is benefiting from the expansion of domestic U.S. optical module and laser diode manufacturing capacity. He projects AAOI’s monthly revenue to reach approximately $471 million by 2027, with the relevant market size potentially accelerating further in 2028.
On SIVE, Serenity noted that the company’s overall revenue pipeline has grown approximately 77% compared to historical levels, with projected revenue reaching roughly $799 million. Photonics-related business is expected to serve as the primary growth engine, with gross margins for this segment potentially reaching around 60%.
At the supply-chain level, Serenity pointed out that FOCI is a key partner of NVIDIA and TSMC in the fiber array unit (FAU) domain and also a critical supplier within the COUPE architecture. He believes FOCI’s current market capitalization of approximately $2.8 billion does not yet fully reflect its strategic position in the industry chain.
Additionally, although Shunsin Technology receives relatively limited market attention, it handles substantial business in co-packaged optics (CPO) and photonics-related packaging and testing, and continues to secure orders from customers including NVIDIA. Serenity believes that, since certain projects are executed through subsidiaries, the market has yet to fully price in its latent growth value.
Beyond the above companies, Serenity also identifies XFAB as a potential beneficiary, anticipating that it will benefit from European semiconductor policy support driving silicon photonics development. Furthermore, he is bullish on silicon carbide (SiC) and gallium nitride (GaN) wafer foundries, expecting these manufacturers to benefit from NVIDIA’s push toward upgrading data centers to an 800V DC power architecture.
