AAOI

Applied Optoelectronics has fallen more than 60% from its peak despite management insisting demand exceeds current manufacturing capacity by hundreds of millions. The June optical selloff was driven by delayed CPO adoption fears, although AAOI's current growth depends primarily on 800G transceivers. Management expects a 60-80% sequential revenue ramp as Texas manufacturing expands, making August 6 a crucial execution milestone.

Shares of Coherent (NYSE:COHR | COHR Price Prediction) are down 11% to $241.62 midday Tuesday, with Applied Optoelectronics (NASDAQ:AAOI) stock falling 10% to $87.89 and Lumentum (NASDAQ:LITE) stock off 9% to $644.56.

With AI capex dominating market sentiment, tech leaders are tempting the bulls. Speaking at the RAISE Summit, Lumentum CEO Michael Hurlston warned that the next AI infrastructure bottleneck is indium phosphide (InP), a niche semiconductor material.

While investors have recognized Applied Optoelectronics's role in AI infrastructure, I believe the market still underestimates the scale of the business the management is building. The investment case is remarkably simple: management either executes on its manufacturing expansion—or it doesn't. If execution succeeds, AAOI's long-term earnings power could be several times higher than what today's valuation implies.

Applied Optoelectronics sees surging demand for AI-driven optical networking products as it expands U.S. manufacturing, but intensifying competition could test its momentum.

SUGAR LAND, Texas, July 16, 2026 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ: AAOI) (“AOI”), a leading provider of advanced optical and HFC networking products that power AI, today announced that it will release financial results for its second quarter ended June 30, 2026, on Thursday, August 6, 2026.

Applied Optoelectronics expands its Texas campus to scale 800G and 1.6T transceiver output as hyperscale AI demand outpaces capacity through mid-2027.

Applied Optoelectronics is seeing strong AI data center demand, but MaxLinear's broader product momentum, hyperscaler adoption, and earnings consistency give it an edge.

Shares of Applied Optoelectronics (NASDAQ:AAOI) are sliding Wednesday afternoon, down 12% to $110 and change, as investors pull back from the highest-beta corners of the AI optics trade.

The first 2X short ETFs on Applied Optoelectronics and Oracle are now available Funds represent first-to-market inverse strategies on Applied Optoelectronics and Oracle Corporation NEW YORK, July 15, 2026 /PRNewswire/ -- Tradr ETFs, a provider of ETFs designed for sophisticated investors and professional traders, today launched two new leveraged ETFs on the stocks of Applied Optoelectronics and Oracle Corporation. The Cboe-listed funds seek to deliver two times short (-200%) the daily performance of their underlying target stocks.