AI optical stocks including Applied Optoelectronics, Coherent, and Lumentum fell sharply by 13-16% over two days despite strong earnings reports and raised revenue guidance. The selloff is driven by investor concerns following a Democratic sweep in Congress, raising fears of stricter data center regulations that could slow AI infrastructure expansion. Applied Optoelectronics posted record revenue growth and expects demand to outpace capacity through 2027, but its stock dropped 16%. Coherent beat earnings and raised guidance but saw a 14% decline amid heavy capital spending and negative free cash flow. The sector-wide decline suggests investors are treating the optical supply chain as a single trade, with upcoming earnings and macroeconomic data expected to influence the next moves.
As of Nov 06, 2026 00:12 WIB, Applied Optoelectronics (AAOI) trades at USD 47.78, down 19.39% in one day, far below its 52-week high of USD 223.10 but above its low of USD 19.49. Coherent (COHR) is priced at USD 167.00, down 14.40%, closer to its 52-week low of USD 134.63 than its high of USD 426.89. Lumentum (LITE) stands at USD 529.98, down 15.44%, roughly halfway between its 52-week low of USD 226.86 and high of USD 1.13K. These declines on Pluang reflect the sector's broad selloff despite strong earnings outlooks noted in the news.
Applied Optoelectronics (AAOI) remains a 'Buy' ahead of its Q3 earnings despite a 30% decline since the initial recommendation. The company posted record Q2 revenue and profits but faced challenges from an equity raise, supply chain issues, and high ...
Optical networking stocks are recovering sharply, led by Coherent, which rose 6% before its critical earnings report expected on November 4. Despite this rebound, Coherent's stock is still down 37% over the past month, reflecting market caution. Appl...
Applied Optoelectronics remains optimistic about its long-term growth despite a 60% stock decline since June. The company forecasts a 130% year-over-year revenue increase in Q3 and expects to return to profitability, driven by strong demand from AI i...
