APAC Roundup: 1 March 2026
Been busy the last two weeks - I am now receiving more ideas than ever.
One of you also sent a lot of new readers our way by posting this chart on Reddit and X, putting us at #3 of an unhinged 30-day absolute return Substack ranking.
I don’t recall making 89 calls(!) but I’d like to see the six month and one year leaderboard please!
Applied Optoelectronics
The big story this week was the AAOI 0.00%↑ guidance on its earnings call:
“By Q2 2027, management forecasts monthly transceiver revenue potential of $378 million”
Numerous references to hyperscaler customers suggest they are locking up optical transceiver supply, perhaps learning from the memory fiasco last year.
Regardless of whether AAOI are overpromising, the market seems to be getting another reminder of the scale of the demand. I keep coming back to this chart posted by Vikram Sekar:
AAOI is the new pump of the week from Serenity. Irrational Analyst also with a bullish take.
We might see a lift for the whole optical transceiver complex tomorrow (or whenever the market thinks the Iranian conflict has been won).
Below the paywall is our list of under-the-radar Japanese names that make optical components for transceivers.
We also flag a photonics company that has an emerging defence angle to its story. A killer combination in this market.