Serenity@aleabitoredditPost2026-07-10

Rosenblatt analysts respond to a B. Riley sell report on AAOI, arguing that although netwo

Rosenblatt analysts respond to a B. Riley sell report on AAOI, arguing that although network optimizations may reduce transceiver usage per XPU, the rapid growth in XPU numbers will still increase total optical demand. They note that VCSELs serve as a bridge for NPO/short reach, but the ideal CPO architecture uses UHP CW lasers, citing Broadcom. The author expresses alignment with Rosenblatt's views and reinforces a bullish thesis on SIVE.

“Regarding $AMZN RNG + OpenAI’s MRC and VCSELs. In what appears to be an indirect response on B. Riley's $AAOI sell report regarding optimizations that "flattens networks and cuts transceiver TAM 40-50%". Rosenblatt TLDR: They've already modeled for this, even though each XPU may use fewer transceivers. The number of XPUs is growing so quickly that total optical demand should still rise. On lasers architectures for CPO: VCSELs are useful as a credible bridge for NPO/short reach. Ideal architecture though for CPO is UHP CW over other lasers, and cites Broadcom for that statements. Which happens to supports my core $SIVE thesis. I feel like Rosenblatt and I share the same views on a lot of things, I like the way they roll.”