From Nasdaq.:

The market has seen a shift in YTD AI beneficiaries, with Dell Technologies Inc, Arista Networks Inc, and Fabrinet experiencing a dip, while Coherent Corp, Lumentum Holdings Inc, and Cisco Systems Inc stand out as outperformers, according to JP Morgan analyst, Samik Chatterjee.

Chatterjee believes the underperformance is misplaced, especially in light of Fabrinet’s guidance for the Datacom business. He attributes the perceived slowdown to market share dynamics in the optics industry rather than a decline in AI infrastructure deployments.

Lumentum is linked to Coherent’s AI datacom opportunity, reinforcing AI prospects and optimism in the Telecom sector. Both Fabrinet and Coherent anticipate an uptick in demand, with China leading followed by recovery in North American markets.

Chatterjee sees potential winners in the evolving AI landscape, including Coherent, Lumentum and Cisco, backed by their unique market positions, robust growth prospects, and partnerships that align with the evolving dynamics of AI deployment.

Investors looking to capitalize on the AI rotation should consider these factors in crafting a well-informed investment strategy.



Read more: Unlocking Value in AI Stocks: Strategic Insights Amidst Market Rotation