$Lumentum(LITE)$ Shorts got fooled by WS and sold at this low price. I'm picking up shares now. AI development is still in an early stage. US development in many cases is actually at a lower level than China. AI humanoid robots in the US are behind China, for example. It will need at least 10 more years for AI development in general.
Bears might want to stay alert. $POET Technologies Inc(POET)$ went from around $4.87 on March 30, 2026, to roughly $20.81 by May 14, 2026. That's a 327% move in about six weeks. Now consider what could happen if major customer announcements, mass production, and accelerating AI infrastructure demand drive the next phase. Another rally like that would catch short sellers off guard. Short side should keep May 14, 2026 in mind. When momentum comes back, this stock can move fast. The next breakout could be even bigger.
$Lumentum(LITE)$ I'm a small long here compared to many, but I've added every day this week. I've been in this one for 20 years and my average is way lower than the current price, so I'm fine. Most of the time I only add 5 or 10 shares at a time, just so I'm not overloading at one particular price point and can average into a comfortable position. Today I added 25 shares, which brings me to 450 shares in this company. I know that's peanuts to a lot of traders, but for a retired guy in his 60s it'll be a nice addition to retirement. Next earnings should be a good one, and once again I think they'll beat some expectations. They'll also guide higher again.
$Lumentum(LITE)$ The short's "narrative of the day" is that the AI buildout "could" face funding shortages which "could" impact companies like LITE. But there's no mention of how LITE's backlog is contractually paid through 2029. I'd like to see this get back to the 100 DMA.
$SPDR S&P 500 ETF Trust(SPY)$ $Applied Optoelectronics(AAOI)$ $Coherent(COHR)$ $Lumentum(LITE)$ $POET Technologies Inc(POET)$ The idea that the US government would just let China win the AI race doesn't hold up. The dip is coming from the same crowd that's buying it, except now they're getting in at another 50% discount because AI spending can't stop - it matters more than the Cold War did. The whole thing has been pushed along by throwaway media headlines. In 2 years the AI optical boom is going to be generational wealth for anyone who didn't sell. F
$Lumentum(LITE)$ Management needs to split this 20-1. Retail participation is what this stock needs. The big institutional investors are causing extreme volatility, and they will likely keep doing so as long as they profit from the swings.
$Lumentum(LITE)$ Nobody wants to believe the data center buildout is still going. But it is, and it will keep running for years. Being short-sighted and pessimistic here is a mistake. Every company involved in the buildout is reporting insatiable demand with no end in sight. It's an easy investment thesis.
$Lumentum(LITE)$ Tech tends to sell off hard right before earnings season. That can actually be a decent setup for reloading high-growth names like LITE at a much cheaper price.
$Coherent(COHR)$ At this price, you're essentially getting the stock back to where it was before the $Lumentum(LITE)$ CEO announcement that they're sold out through 2029, and before the reports about the US government possibly limiting foreign optical companies' exposure to US markets. The price action feels a bit silly to me.