AI stock guru Serenity names four photonics stocks: AAOI surges 11x and expands production, XFAB projected to soar 76%

"AI Stock Guru" Serenity named four high risk/reward AI photonics stock picks on social media: AAOI, SIVE, FOCI, and Shunsin Technology, with X-FAB as an alternative. He believes AAOI's monthly revenue could reach $471 million by 2027, FOCI holds the key bottleneck in NVIDIA's CPO architecture, and Shunsin Technology handles packaging and testing for NVIDIA but the market hasn't priced it in yet. (Background: The AI Stock Guru who called Dell right picks a new target: Swedish photonics maker SIVE 13x gain, shorts lose four in a row) (Background context: Dell earnings surge 28%: Trump bought at $126 and has tripled, new stock guru calls for chasing upstream supply chain) Key highlights - Serenity named AAOI, SIVE, FOCI, and Shunsin Technology as top AI photonics stock picks, with X-FAB as an alternative - AAOI has 11x'd over the past year to $169, expanding capacity 3.5x in Texas, targeting $471 million monthly revenue by 2027 - Shunsin Technology handles CPO packaging and testing for NVIDIA, with a market cap of $2 billion; alternative pick XFAB surged 76% after Serenity's mention After calling Dell's 28% surge and SIVE's 13x gain right, X platform analyst Serenity (@aleabitoreddit, with over 470,000 followers) this time directly laid out a map of the entire AI optical communications supply chain. Within his "Chokepoint Theory" framework, AAOI, SIVE, FOCI, and Shunsin Technology each occupy different critical positions in data center optical communications, while alternative pick X-FAB handles silicon carbide wafer foundry services on the power architecture side. – $AAOI at $12B – $SIVE at $2B – Foci at $2.8B – Shunsin at $2BUsually the best risk/reward to me currently. Lot of my answers before like $AXTI already 10x'd, so different lineup this time. $AAOI due to absurd H1 2027 revenue projections from capacity ramp, doing everything… https://t.co/Vtzc0Ao9gZ — Serenity (@aleabitoreddit) May 30, 2026 AAOI (Applied Optoelectronics, NASDAQ: AAOI) is one of the few optical module manufacturers that completes the entire process from laser manufacturing to module assembly in the United States. With a share price around $169 and a market cap of approximately $5.6 billion, it has 11x'd from $15 over the past year, but Serenity believes this is just the beginning. He estimates AAOI's monthly revenue could reach approximately $471 million by 2027, with TAM further growing exponentially in 2028. On the capacity side, the company is upgrading wafers from 4-inch to 6-inch in Texas, with a 3.5x capacity expansion, and a new 211,000-square-foot facility expected to go into production in Q3/Q4 2026. Q1 2026 revenue was $151.1 million (up 51% YoY), data center product revenue doubled to $81.4 million, and the full-year outlook has been raised to over $1.1 billion. On SIVE (Sivers Semiconductors), Serenity points out that the revenue pipeline has grown approximately 77% from historical levels, expected to reach about $799 million, with most growth coming from the photonics business, where gross margins could reach 60%. Full analysis of SIVE is in the background section. FOCI (3363.TW) is an important supplier of FAU (Fiber Array Units) in NVIDIA and TSMC's COUPE architecture. FAUs are responsible for precisely aligning optical fibers with silicon photonics chips. FOCI's ReLFACon product is compatible with both grating couplers and edge couplers, with 1.6T and 3.2T FAUs expected to enter mass production in the second half of 2026. Serenity believes FOCI's market cap of approximately $2.8 billion remains undervalued, as it represents one of the key bottleneck nodes in the COUPE architecture. Shunsin Technology (6451.TW) is a Foxconn subsidiary with a market cap of approximately $2 billion, with its stock up 19% in the past week. Serenity points out that Shunsin actually handles a large amount of NVIDIA CPO and photonics-related packaging and testing business, with some contracts even signed through subsidiaries, and the market has not fully priced this in. The company's 2025 revenue was NT$7.53 billion (up 45% YoY), but net profit was only NT$27.5 million, with traditional OSAT business gross margins at only 15%. Serenity's view is that CPO and 1.6T orders could lift blended gross margins to 30-35%, an inflection point the market hasn't seen yet. Compared with US-listed Fabrinet, which does similar FAU optical alignment work, Shunsin's valuation is notably low. Serenity lists X-FAB (Euronext: XFAB) as an alternative pick, with a market cap of approximately $1.28 billion. X-FAB is a European silicon carbide (SiC) and gallium nitride (GaN) wafer foundry, also operating the silicon photonics brand photonixFAB. He is bullish on XFAB benefiting from two main themes: first, NVIDIA-driven 800V DC data center power architecture upgrades, where silicon carbide can handle high-voltage conversion that traditional silicon cannot stably operate at 800V, and TI has partnered with NVIDIA to launch a complete 800V DC power solution; second, future support for the silicon photonics supply chain under Europe's Chip Act 2.0. XFAB has already received €128 million from the EU Chips Act and $50 million from the US CHIPS Act. On May 27 when Serenity posted, XFAB surged 76% intraday. From Dell to SIVE to these four picks plus the alternative, what he's betting on isn't individual stocks, but a map of the entire optical communications supply chain. None of the above is investment advice; it is solely his personal opinion. FAQ Which four AI photonics stocks did Serenity name? AAOI (Applied Optoelectronics, US optical module manufacturer), SIVE (Sivers Semiconductors, Swedish InP laser), FOCI (Taiwan FAU supplier), and Shunsin Technology (Foxconn-affiliated CPO packaging), plus alternative pick X-FAB (European SiC/GaN foundry). What is NVIDIA's COUPE architecture? Why is FOCI a key bottleneck? COUPE is the Co-Packaged Optics (CPO) architecture developed by NVIDIA in collaboration with TSMC, used for high-speed optical communications in AI data centers. FOCI supplies FAUs (Fiber Array Units), responsible for precisely aligning optical fibers with silicon photonics chips — a critical component within the optical engine.