Optics stocks like Lumentum, Corning, and AXT fell sharply due to a risk-off sentiment triggered by lower-than-expected AI revenue figures from Anthropic and OpenAI, alongside rising long-term Treasury yields hitting multi-year highs. Despite strong fundamentals and recent gains, investors are rotating out of high-growth AI hardware names into defensive sectors amid concerns over ballooning off-balance-sheet AI commitments and cautious future guidance. The optics sector's outlook depends on Treasury yields stabilizing; if yields rise further, profit-taking could continue.
Corning CEO Wendell Weeks stated on Mad Money that tariffs have a negligible effect on the company because 90% of its U.S. revenue comes from products made in the U.S., and only 1% of U.S. sales are from Chinese factories. This strategy of locating p...
Optics stocks like Corning, Lumentum, Applied Optoelectronics, and Coherent climbed significantly on strong earnings reports and optimistic future demand, especially driven by AI hardware needs. Lumentum and Coherent reported substantial revenue grow...
