2 Optical Stocks to Buy After Tuesday's Selloff

LITE and COHR sold off sharply Tuesday in a broader AI stock retreat despite both optical-component suppliers recently posting strong earnings that point to demand outpacing supply capacity. The companies, which provide critical optical infrastructure for AI data centers, reported record revenues and issued robust forward guidance in their latest quarterly results.

The disconnect between Tuesday's price action and the companies' fundamental reports creates a potential entry point for traders. Both firms signaled that current demand for their products exceeds their ability to manufacture and deliver, a supply constraint that typically supports pricing power and forward visibility.

The Motley Fool frames the selloff as a buying opportunity, arguing the market overreacted to broad AI-sector jitters while overlooking company-specific strength. Neither LITE nor COHR has issued guidance cuts or flagged weakening order books; instead, both continue to cite capacity limitations as the binding constraint on near-term growth.

The article positions the Tuesday decline as sentiment-driven rather than fundamentals-driven, a classic setup for mean reversion if the supply-demand imbalance persists.