Taiwan optical-component maker Browave (上詮) slipped deeper into the red in July, a bad sign for a stock still priced as a hot AI-networking play.

• July revenue grew from a year earlier, but the company swung from profit to loss.
• The single-month loss was bigger than its entire second-quarter loss.
• Losses have piled up all year, with the first seven months well into negative territory.
• The red ink comes from heavy spending on new clean rooms and automated production lines for CPO fiber-array units.
• The stock still trades at NT$735, betting the capacity build pays off.

Outlook: The company plans to start shipping higher-speed fiber-array products to customers this quarter, which is when the spending has to start turning into profit.