Optics stocks including Coherent, Applied Optoelectronics, and Corning dropped sharply despite Citi's bullish $11 billion optical switching market forecast. The selloff appears driven by profit-taking after these high-beta stocks surged significantly this year, rather than any negative news or weakening demand. The Roundhill Photonics & Optics ETF also fell, indicating broader selling pressure in the sector. Investors are advised to manage risk by moderating position sizes and watching for signs of stabilization in key optics stocks and ETFs.
Following the optics sector selloff, Coherent shares on Pluang are down 5.47% at USD 279.64 as of Sep 29, 2026 01:02 WIB, with a market cap of $57.93 billion. Applied Optoelectronics also fell 5.44% to USD 95.88, while Corning dropped 3.13% to USD 151.80, despite strong buying interest at 98% buy orders for Corning. Typical holding periods vary from 4 days for Coherent to 35 days for Corning, showing differing investor strategies in this volatile sector.
The Tema Photonics & Optical ETF (LAZR) received a Hold rating because its portfolio composition presents risks despite favorable themes in optical interconnect and AI infrastructure. Key holdings like Lumentum are seen as overvalued, while preferred...
Coherent Corp's stock has surged 59% in 2026 due to growth in AI data center optical connectivity. However, its peers Lumentum Holdings and Applied Optoelectronics have outperformed it significantly with gains of 151% and 191% respectively. This gap ...
