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Optical-networking stocks surge double digits on AI data center demand and strong earnings reports

Market News
11 May 2026
24/7 Wall Street
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Bullish
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Applied Optoelectronics, Lumentum, and Coherent stocks jumped 13-24% Monday, reversing last week's losses amid renewed optimism for AI-driven data center investments. Applied Optoelectronics led with a 24% gain after reporting 51% revenue growth and strong guidance fueled by demand for 800G transceivers. Lumentum and Coherent also posted strong earnings and growth forecasts, supported by expanding partnerships and capacity ramps. Investors should watch for upcoming earnings, capacity expansions, and hyperscaler spending for further direction.

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