2 Optical Stocks to Buy After Tuesday's Selloff
The market spent Tuesday worrying that AI demand will fade. Both companies had just reported the opposite.
Overview
Tuesday, Aug. 18, was rough on the artificial intelligence (AI) trade. Investors sold the richly valued growth stocks that led the AI boom, on worries that prices had run too far and that data-center demand may not last. Rates were not the trigger: the 30-year Treasury yield actually ticked lower, though it sits near its highest level since 2007.
Two of the day's harder falls landed on companies that make the optical components AI data centers run on. Lumentum(NASDAQ:LITE) dropped 9.9% to $873.31, and Coherent(NYSE:COHR) fell 12.8% to $306.43.
Details
Neither decline traces to anything either company said. Both reported results this month, and both updates speak directly to the worry driving the selling.
Source
Originally published at www.fool.com.