Optical connectivity stocks like Applied Optoelectronics and Lumentum have surged 175% and 164% respectively in 2026, driven by growing AI data center demand. These companies supply key components for data center optics, a sector expanding rapidly due to AI cluster buildouts. However, a recent 9% drop in Applied Optoelectronics shares signals potential volatility, prompting investors to consider whether to secure profits or hold for further gains amid upcoming technology transitions. The market awaits how these firms will maintain orders as data centers shift to faster optical technologies.
Applied Optoelectronics has a market cap of $8.55 billion and shows a high trading volume of 10,919,897 shares on Pluang as of Oct 14, 2026 02:21 WIB. Despite the article noting a recent 9% drop, AAOI is down 4.20% in the last day on Pluang, with nearly balanced order activity at 48% Sell and 52% Buy. Lumentum, with a much larger market cap of $90.17 billion, trades at $980.60 and is down 1.49% over the same period, with strong buying interest at 87% Buy orders on Pluang.
Lumentum's stock dropped 10%, leading a broader 7% selloff in AI optics stocks like Applied Optoelectronics and Coherent, despite having a fully booked order book through early 2029. This decline highlights a sector-wide selloff rather than company-s...
Optical component makers like Lumentum, Applied Optoelectronics, and Coherent saw their stocks rise sharply after Lumentum announced its optical capacity is sold out through early 2029 due to high AI data center demand. This strong demand reverses re...
Applied Optoelectronics' stock has fallen over 50% in six months due to share dilution and a memory shortage, yet analyst Mike Genovese from Rosenblatt Securities expects the stock to double from its current $105.90 price to $220.00. The company, whi...
