BlockBeats News, June 22nd, some market participants discussed the valuation and growth expectations of AAOI, a concept stock in the optical communication sector, on social media, triggering a debate among investors about its reasonable entry price.

Serenity stated that if the company's revenue meets expectations, showing a year-on-year growth of over 800%, it could potentially achieve an annualized revenue of around $5.6 billion (based on the current market capitalization of approximately $12.8 billion), with monthly revenue reaching about $471 million, mainly driven by the expansion of AI infrastructure demand.

The discussion pointed out that amid constrained industry capacity, cloud service providers (CSPs) and customers like Advanced Micro Devices are continuing to lock in supply through long-term agreements (LTAs), which could drive industry prices and profit margins higher.

Assuming demand grows exponentially until 2028, average selling prices (ASPs) and profit margins may improve concurrently, but the ultimate entry price still depends on investors' risk preference and valuation judgment.