Serenity Maintains Bullish Stance on Memory and Photonics Sectors Amid Market Cycles

Serenity reaffirms bullish outlook for memory and photonics, citing persistent supply bottlenecks and unreasonable valuation ratios despite recent retail capitulation.

Woofun AI reports that Serenity maintains a bullish position on the memory sector, represented by Micron (MU) and Samsung, asserting that market focus rotates among various supply constraints. Attention has recently shifted to photonics stocks such as AXTI and LITE, with price movements reflecting liquidation effects rather than fundamental deterioration. Serenity noted that known supply shortages for COHR and LITE laser products, alongside demand imbalances highlighted by AAOI, remain intact. In the memory space, retail investor sentiment appears weakened despite prior optimism following 16 SCA agreements with Micron. Serenity argues that current operating profit-to-market-cap ratios are "highly unreasonable" and predicts demand imbalances could intensify next year, while valuations and narratives adjust within the ongoing sector rotation.