Cooling CPI ignites optical module stocks! LITE surges 15%; where are the opportunities for COHR?

$Nasdaq Composite Index (.IXIC.US)$ Yesterday's key CPI inflation data came in unexpectedly cool. Coupled with two consecutive months of weakness in the U.S. labor market, concerns about a Fed rate hike in September have further eased, which isundoubtedly a bullish signal for high-valuation tech growth stocks.

$CoreWeave (CRWV.US)$ Meanwhile, core AI companies such as CRWV and LITEcontinued to validate industry demand through their earnings and forward guidance,so yesterdaywas not just a simple rise in the indices;, rather thancapital has started to flock back into AI infrastructure plays,particularly optical modules and data centers. These two themes remain the most noteworthy directions in the tech market.

Let's first look at the top-performing core stocks in the optical transceiver sector.

$Lumentum (LITE.US)$ 1. LITE

Surged nearly 15%, with the share price approaching $930. If youaccumulated positions at the lows around $800–$820 this week as per my plan,your profits on LITE are quite substantial. The most important move now is to hold your breakeven level firmly and continue to maximize gains. The second upside target can be set at $1,000–$1,030.

If you'reFor those who completely missed the rally,the situation is somewhat awkward. If you remain very bullish on optical transceivers and want to position LITE as a core holding for the next major upward wave, thenyou may have to passively wait for a pullback to around $880to use as your entry price for an initial position.

$Coherent (COHR.US)$ The other core play in optical transceiver modules is COHR (Coherent), itsgain has lagged behind LITE,, of whichprimarily because the market is awaiting its after-hours earnings report., and according tothe latest released results,COHR's performance and forward guidance similarlycompletely exceeded market expectations.The company's demand outlook for the next fiscal year is very strong. However, despite the solid earnings report, why did the stock see a slight pullback? I don't think this is necessarily a bad thing, becausein terms of its position within the US optical communications industry, COHR is an absolute core player with no issues regarding order demand,and from a valuation perspective, its current price level is actually more attractive than LITE's.If you are concerned that LITE hasrisen too high and do not wish to chase the rally, you canshift your focus to COHR.$330 remains a solid entry point for an initial tranche, with the first upside target still set at the previous high of $385.

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