I bought the dip, $1mm in AAOI
$AAOI
AI SUMMARY — Investor purchased $1mm of AAOI after market dip driven by OpenAI concerns, believing AAOI's AI infrastructure positioning and sold-out capacity position it for strong H2 next year FCF generation and potential $500 price target within 2 years. Key risks include execution on capex spending, AI infrastructure demand sustainability, and near-term cash burn during capex phase.
| TICKER | AAOI |
USER | u/Mysterious-Start-689 |
| RATING |
BULLISH |
ENTRY |
$106.03
|
| POSITION |
9442 sh
|
BOOK VAL |
$1001227.57 |
| CURRENT |
$105.90 |
P&L % |
-0.12%
|
| CURR VAL |
$1000000.00 |
P&L $ |
-1227.57
|
Went a little nuts on AAOI today. They sunk because they’re an AI infrastructure play and there was concern about OpenAI’s ARR being light.
AAOI’s ATM is done and they’re in capex mode. H2 next year should be good for free cashflow, they’re sold out and so are their competitors. I think this thing goes to $500 within 2 years, but I’ll probably sell most if we hit $200.