Optical transceiver modules are awaiting a pullback, while CPUs may initiate a catch-up rally.

1. $Lumentum (LITE.US)$ LITE dropped nearly 10% in a single day yesterday, with the share price returning to around $870. Looking at the structure for the entire month of August, $800 represents a crucial阶段性 (phase-specific) low for Lumentum. Therefore, if the intraday correction continues today, I consider the $830–$800 range to be a favorable zone for initiating the first position. If the price adjusts to this level and the market continues to correct, leading to a second retest for LITE, the entry point for the second position can be waited out near $730.

2 $Marvell Technology (MRVL.US)$ Another key name in the optical module sector that I believe offers the strongest stability at this stage is MRVL.

Compared to LITE, AAOI, and other high-beta stocks, MRVL's recent gains have been less exaggerated. From a technical structure perspective, there is a clear dense trading zone at lower levels near $200, which theoretically offers solid support from capital inflows. If you remain bullish on optical transceivers but prefer not to gamble on high-volatility names like LITE, you may shift your focus to MRVL. For investors who already entered at $216 yesterday, there is no need to rush to adjust positions; simply continue holding as normal. If the market indeed undergoes a second correction, consider averaging down when the price approaches $190. For those currently fully in cash and observing from the sidelines, I consider the $205–$200 range to be a comfortable entry zone.

Next, I want to focus on one specific sector: CPUs.

I actually view CPUs as the tech sector most likely to experience rapid catch-up growth in the next cycle. Since late July, optical transceivers, memory chips, and data center stocks have all risen, yet CPUs, which are equally critical infrastructure for AI data centers, have not seen a significant primary uptrend.

3 $Intel (INTC.US)$ In particular, Intel's effective gain from its low-point rebound to now is less than 15%, significantly lagging behind optical transceivers, memory, and data center stocks. This raises an interesting dynamic: sectors that have rallied the most now need to shed excess valuation, while those that have lagged may offer catch-up potential. If you are concerned about the short-term volatility in optical transceivers and memory, fearing continued profit-taking, you could shift some attention to the CPU sector. Currently, Intel remains the key focus. Technically, the $95–$90 range remains a favorable area for staged entries. Furthermore, based on 13F filings from certain funds and institutions, institutional allocation to Intel remains high. Thus, I believe Intel's current share price still offers room for valuation repair. Especially if sector rotation occurs, CPUs could well become the next focus of capital flows. If you are currently wary of the short-term risks in optical transceivers and memory, consider positioning at Intel's relatively lower levels.

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