AAOI

- Coherent (COHR) and Applied Optoelectronics (AAOI) lead AI optics losses, sinking 12% and 10% as a chipmaker-driven selloff accelerates ahead of earnings. - LYTE's 10% drop dwarfs QQQ's 2% decline, exposing how concentrated AI optics exposure amplifies sector-wide tech selling. - Lumentum CEO Michael Hurlston said datacenter optical components are sold out for years, yet strong demand hasn't prevented a 9% share drop. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) Optical networking stocks that powered the AI data-center trade this year are falling fast, and the selling is landing on the group's biggest names at once. Coherent (NYSE:COHR) stock is trading at $209.82, down 12% in afternoon trading, showing how quickly momentum in AI optics has reversed. Selling extends across the AI connectivity supply chain, from laser chips to finished transceiver modules. Meanwhile, Applied Optoelectronics (NASDAQ:AAOI) stock is at $69.30, down 10%, a slide that lands just behind Coherent's loss. Lumentum Holdings (NASDAQ:LITE) stock is at $770.53, down 9%. That marks a smaller decline than Coherent and Applied Optoelectronics posted, though still a steep loss for a name that climbed on AI optical demand. Each of these companies sells optical parts that move data inside AI datacenters, so shifts in sentiment toward hyperscaler spending tend to hit Coherent, Applied Optoelectronics and Lumentum shares together. The Roundhill Photonics & Optics ETF (CBOE:LYTE) is down 10%, falling nearly as hard as Coherent, Applied Optoelectronics and Lumentum. Over in large-cap tech, the Invesco QQQ Trust (NASDAQ:QQQ) is down 2%, representing a far softer retreat for the NASDAQ 100 benchmark. That gap marks the optics selling as group-wide caution before Coherent, Applied Optoelectronics and Lumentum report quarterly results. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ Technology stocks are falling broadly, led by chipmakers, and the optics group is extending a slide that has erased much of its earlier gains, and Coherent, Applied Optoelectronics and Lumentum shares all remain higher for the year, a reminder of how far the group ran before this pullback took hold. Quarterly reports from Coherent, Applied Optoelectronics and Lumentum arrive in the coming weeks, and the selling reflects caution before those numbers land. Lumentum Chief Executive Officer Michael Hurlston stated earlier this month that the company's data center optical components are sold out for years. That demand background hasn't shielded Lumentum shares from the chip-led selling, and Coherent and Applied Optoelectronics shares are sliding right alongside, as strong order books and falling share prices can coexist when a group has rallied hard and the broader technology sector turns lower. Coherent has an industrial laser business. That gives it a wider product mix than a pure-play datacenter optics supplier, though Coherent shares are trading in lockstep with AI optics names during this selloff. The company's role in the transition from copper to optical connectivity in AI datacenters remains the heart of the bullish case. Applied Optoelectronics depends on a small group of large customers. Vertical integration from laser chips and subassemblies through finished optical modules gives the company closer control over supply, but a delay from a single customer can weigh hard on results. Growth projects at Lumentum span optical circuit switching, cloud modules and ultra-high-power co-packaged optics lasers, all tied to rising AI bandwidth needs. A sold-out order book supports the bullish case but raises the bar for execution, since constrained output could cap revenue growth. Roundhill's LYTE photonics fund counts Lumentum and Coherent among its largest holdings. That concentration explains why the fund is sliding almost in step with Lumentum and Coherent. The coming reports from Coherent, Lumentum and Applied Optoelectronics will show whether capacity is keeping pace with demand. For Applied Optoelectronics, the open variable is order timing from its large customers. Lumentum's management needs to show that sold-out demand is turning into higher shipments. Until those reports arrive, investors weighing their exposure should adjust their holdings carefully given that Coherent, Applied Optoelectronics and Lumentum shares may keep trading in step with the chip sector's swings. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

- Applied Optoelectronics, Lumentum, and Coherent rallied Monday as traders positioned ahead of early November earnings reports focused on AI optical demand. - Lumentum CEO Michael Hurlston stated the company is sold out through 2029 and cannot meet 70% of demand for some products through 2027. - Coherent's PhotonLink integrated optics platform already has 10-plus customer engagements, with initial revenue expected to ramp in the December quarter. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Coherent didn't make the cut. Enter your email to see the names that beat COHR. The report is free. Enter your email and see if any of your stocks made the cut. Applied Optoelectronics (NASDAQ:AAOI) stock jumped 5% to $79.01 on Monday as optics names advanced ahead of upcoming earnings reports. Lumentum (NASDAQ:LITE) shares rose 4% to $856.18, while Coherent (NYSE:COHR) stock climbed 2% to $236.93. The group found support from anticipation surrounding results due in early November and continued interest in AI-driven optical demand. The Roundhill Photonics & Optics ETF (BATS:LYTE) advanced 2% to $20.20. Broader markets also moved higher, with the SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) up 0.56% to $767.49. Applied Optoelectronics and Lumentum are scheduled to report earnings on November 5, and Coherent is set to report on November 4, keeping near-term focus on guidance and order trends. Applied Optoelectronics shares led the session's gains among the three. The company supplies optical components used in data-center and communications applications that have benefited from rising bandwidth needs. Traders positioned ahead of the November 5 report, watching for updates on AI-related optical demand and capacity utilization. Lumentum stock also posted a solid advance. CEO Michael Hurlston recently noted that Lumentum's components are sold out through 2029 and that the company cannot meet roughly 70% of demand for some products through 2027 and 30% for others through 2028. Those comments have reinforced the view that optical connectivity remains a bottleneck in AI infrastructure buildouts. ------ Free Report, Just Released Why Didn't COHR Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And COHR didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ Coherent stock rose more modestly. The company has launched its PhotonLink integrated optics platform designed for co-packaged optics, near-packaged optics, and chip-to-chip connectivity. Coherent already has more than 10 customer engagements in these areas, with initial PhotonLink revenue expected to ramp in the December quarter. Coherent can benefit from existing high-speed optical transceiver demand even if broader co-packaged optics adoption takes longer than expected. One analyst recently reiterated a Buy rating with a $395 price target, pointing to opportunities in both current products and newer technologies. Valuation remains elevated relative to historical averages, leaving limited room for disappointment. The Roundhill Photonics & Optics ETF's gain reflected measured interest across the specialty group. Photonic integrated circuits are seeing rapid expansion tied to high-speed data transmission and energy-efficient optical technologies for AI data centers. Market forecasts point to strong compound annual growth rates through the end of the decade as cloud and hyperscale operators scale optical infrastructure. Similarities among Applied Optoelectronics, Lumentum, and Coherent include exposure to AI networking demand and optical components for data centers. Differences appear in product focus and scale, with Lumentum highlighting multiyear sold-out conditions, Coherent emphasizing integrated platforms, and Applied Optoelectronics concentrating on specific optical modules. The broader chip sector has also shown signs of stabilizing after a recent soft stretch. Upcoming earnings will provide the next major checkpoints for order visibility and margin trends across the three companies. Lumentum's multiyear capacity constraints and Coherent's PhotonLink ramp offer potential catalysts if demand remains robust. Applied Optoelectronics faces similar questions around AI optical adoption and competitive positioning. Investors should consider keeping their position sizes modest given the volatility typical of optics and photonics stocks. Stronger-than-expected guidance or further evidence of sold-out conditions could support the shares, while any signs of softer demand or elevated valuations may pressure the group after the recent run. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And COHR wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

Sono-Tek Corporation (SOTK) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -60.00%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.05, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. SonoTek, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $5.23 million for the quarter ended August 2026, missing the Zacks Consensus Estimate by 7.82%. This compares to year-ago revenues of $5.16 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SonoTek shares have added about 72.4% since the beginning of the year versus the S&P 500's gain of 14%. While SonoTek has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SonoTek was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $5.26 million in revenues for the coming quarter and $0.10 on $21.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Applied Optoelectronics (AAOI), has yet to report results for the quarter ended September 2026. This maker of fiber optic products used by cable TV providers is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +255.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Applied Optoelectronics' revenues are expected to be $269.15 million, up 126.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sono-Tek Corporation (SOTK) : Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LITE surged 15% after revenue more than doubled to $1.01B in fiscal Q4 2026, with CEO Michael Hurlston noting pump-laser shipments are up 80% year over year and effectively sold out. SMCI jumped 16% and CRWV soared 20% on AI infrastructure prints that reinforced hyperscaler capex momentum alongside Lumentum's optical demand surge. JPMorgan raised its LITE target to $1,280 while Bank of America cut to $1,000, splitting on valuation as the stock nears its sell-side ceiling. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Lumentum (NASDAQ:LITE) shares are surging Wednesday, up 15% to $942 in midday trading after the optical components maker delivered a blowout fiscal Q4 2026 report. The move extends an already ferocious rally, with LITE stock up 123% year to date through Tuesday's close. The rally is spilling across the AI optics complex. Coherent (NYSE:COHR) shares are climbing 9% to $358, Corning (NYSE:GLW) stock is up 5% to $167, and Applied Optoelectronics (NASDAQ:AAOI) shares are advancing 3% to $139. The iShares Semiconductor ETF (NASDAQ:SOXX) is trading at $551, a risk-on tell for the broader chip complex. Lumentum reported fiscal Q4 2026 revenue of $1.01 billion, more than doubling year over year and topping the $988.6 million consensus. Non-GAAP EPS came in at $3.23, ahead of the $2.99 consensus, with non-GAAP gross margin reaching 50.4%. The guidance turbocharged the reaction. Lumentum sees fiscal Q1 2027 revenue of $1.225 billion to $1.275 billion, with EPS of $4.05 to $4.35. CEO Michael Hurlston stated the company will hit its $1.25 billion quarterly revenue target more than a quarter early, with pump-laser shipments up more than 80% year over year and "effectively sold out." Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Hurlston added that the 1.6T transceiver ramp is accelerating, and fiscal Q1 2027 should mark the company's first triple-digit OCS revenue quarter (above $100 million). Lumentum CFO Wajid Ali underscored the operating leverage embedded in the guide. Coherent, Corning, and Applied Optoelectronics are all trading higher on direct read-through from Lumentum's optical demand commentary. The catalyst is layered on top of same-evening AI infrastructure prints from Super Micro Computer (NASDAQ:SMCI), CoreWeave (NASDAQ:CRWV), and Nebius Group (NASDAQ:NBIS) that reinforced hyperscaler capex trajectories. SMCI stock is up 16%, CRWV shares are jumping 20%, and NBIS stock is soaring 27% in Wednesday trading. Ciena (NYSE:CIEN) shares are also rallying, up 13% as the optical systems supplier gets pulled into the same demand narrative. Sell-side responses split between fresh price target hikes and valuation caution. JPMorgan raised its LITE stock price target to $1,280 from $1,165 (Overweight), arguing Lumentum "sidestepped near-term concerns" on transceiver mix. Mizuho lifted its target to $1,140 from $1,100 (Outperform), citing margin upside and a "strong laser chip moat." The pushback: Bank of America cut its target to $1,000 from $1,100 (Neutral) even after raising CY2027 and CY2028 EPS estimates by 19% each, reflecting a de-rating across shortage-area names. Meanwhile, Morgan Stanley's Meta Marshall raised her target to $1,000 from $900 (Equal Weight), biased positively near term but flagging no clear catalyst until fall and next year's OFC conference. Investors can watch for whether today's gains hold into the close and whether follow-on analyst notes push targets higher into Thursday's session. The SOXX ETF is a broad semiconductor fund, so pure-play optics names remain a small slice and single-name catalysts get diluted at the ETF level. With LITE stock now trading near the high end of the sell-side range, position sizing discipline matters. Investors should consider trimming their exposure into strength if the move outruns the fundamentals, while watching Ciena's upcoming print and any hyperscaler capex updates for confirmation that the AI optical cycle still has room to run. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Lumentum’s fiscal fourth quarter revenue more than doubled to $1.01 billion. Analysts expect Coherent’s fiscal fourth quarter revenue to rise 30% to $1.98 billion, which would be the highest pace of growth in three years. Stocktwits sentiment was ‘extremely bullish’ for LITE and ‘bullish’ for COHR on Wednesday. Lumentum Holdings’ stock surged 8% in premarket trading Wednesday after the company reported upbeat quarterly results, lifting peer photonics stocks as investors turn their focus to Coherent Corp.'s earnings report due after the market close. Applied Optoelectronics’ shares rose 4%, Coherent’s shares rose 5.6%, and POET Technologies’ stock gained 2.6%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Lumentum’s fiscal fourth quarter revenue more than doubled to $1.01 billion, exceeding expectations of $987.70 million. Adjusted diluted EPS was $3.23, above an estimated $2.97 per share. For the current quarter, Lumentum expects revenue in the range of $1.225 billion to $1.275 billion, as well as adjusted earnings per share between $4.05 and $4.35 – well above analysts’ expectations of $1.157 billion in revenue and $3.61 per share profit. Analysts expect Coherent’s fiscal fourth quarter revenue to rise 30% to $1.98 billion, which would be the highest pace of growth in three years. Adjusted profit is expected to rise 61% to $1.62 per share. Currently, 16 out of 21 analysts rate the stock ‘Buy’ or higher and five rate it ‘Hold,’ per Koyfin. Their average price target of $394.62 implies a 20% upside to the stock’s closing price on Tuesday. Coherent, POET, Lumentum Holdings and Applied Optoelectronics are all key suppliers in the fast-growing optical networking and photonics market. Coherent sells lasers, optical transceivers, silicon photonics, and advanced materials used to connect GPUs across massive AI clusters, while Lumentum and Applied Optoelectronics supply high-speed optical transceivers, lasers, and networking components that move data between AI servers. POET, a much smaller player, develops optical engines and its proprietary Optical Interposer platform designed to make AI optical modules cheaper, faster and more power efficient. Investor interest in all four has surged as hyperscalers ramp AI infrastructure spending, driving expectations of a multi-year boom in optical connectivity, which is increasingly viewed as a critical bottleneck in scaling next-generation AI data centers. LITE was among the top 10 trending stocks on Stocktwits at the time of writing, with the retail sentiment for the stock climbing to ‘extremely bullish’ from ‘bullish.’ The sentiment was ‘bullish’ for COHR and POET, and ‘extremely bullish’ for Applied Optoelectronics. “$LITE analyst upgrade tomorrow $1000 to $1500. It’s going to be a juicy day,” a trader wrote. For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: SMCI Stock Jumps Premarket: Super Micro Keeps Lid On $60B Orderbook, CFO Says ‘Emerging Neoclouds And CSPs’ In Mix Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: FLYX Q2 2026 Earnings Summary ALT Q2 2026 Earnings Summary NEXN Q2 2026 Earnings Summary

Coherent and Lumentum are selling off 12% and 7% ahead of earnings after both stocks surged over 100% year to date at extreme valuations. Applied Optoelectronics slid just 1% after already reporting, while the SOXX ETF dropped only 1%, confirming the selloff is optics-specific, not a broad semiconductor unwind. Options markets lean defensive with put/call ratios of 1.54 and 1.19 as Lumentum and Coherent report earnings back-to-back this week. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Shares of Coherent (NYSE:COHR) are sliding midday Monday, with Coherent stock down 12% to $333.83 as traders take profits across the AI optics complex. Lumentum Holdings (NASDAQ:LITE) isn't far behind, with Lumentum shares off 7% to $830.05. The pullback caps a parabolic multi-week run in the group. Coherent stock had rallied sharply into the week ending August 7, while Lumentum shares climbed alongside it. The move looks like classic profit-taking and pre-earnings de-risking two richly valued AI optical-networking names, with no fresh negative headline behind it. Coherent stock is coming off a monster tear, up 105% year to date heading into today. Lumentum shares are even more stretched, with Lumentum stock having gained 142% year to date prior to today's session. Both names ran hard on a reported U.S. move to restrict Chinese optical transceivers. Community chatter has since turned to vague sector-rotation talk that weighs near-term supply-chain uncertainty against long-term AI-networking demand. The valuation math also matters here. Coherent trades at a trailing 12-month P/E ratio of 159.96x, and Lumentum sits at 145.91x. Both names were priced for perfection heading into their next earnings reports, which helps to explain why they are selling off hardest today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. The earnings calendar is doing a lot of the work behind today's price moves. Lumentum reports its fiscal Q4 2026 results after the close on Tuesday, August 11, and Coherent follows with its fiscal Q4 2026 report after the close on Wednesday, August 12. This helps to account for why another major AI optics name is barely budging. Applied Optoelectronics (NASDAQ:AAOI) shares are down just 1% to $133.63, as Applied Optoelectronics already delivered its report on August 6 and doesn't have another earnings event coming soon. Applied Optoelectronics is not profitable on a trailing-12-month basis, so there's no TTM P/E ratio to anchor to. Overall, Applied Optoelectronics is insulated from the pre-earnings de-risking pressure that's hitting Coherent and Lumentum this morning. The broader chip complex is holding up better than the optics pure-plays, which tells you that this is optics-specific, not a broad semiconductor unwind. The iShares Semiconductor ETF (NASDAQ:SOXX) is down 1% to $536.94, a modest slip for a fund concentrated in large-cap chipmakers where optical-component names occupy only a small slice of the basket. The iShares Semiconductor ETF carries an expense ratio of 0.33% and is still up 76% year to date. That relative calm underscores the point: investors are trimming stretched positions in the two optical suppliers most tied to NVIDIA's (NASDAQ:NVDA) AI data center buildout, not stepping away from semiconductors as a whole. NVIDIA remains the demand engine underpinning the optical-networking story, and the next NVIDIA earnings report is widely watched as a sector catalyst. Any hesitation on AI capex expectations could land hardest on Coherent and Lumentum, the two premier NVIDIA optical partners. Investors can watch for whether Lumentum's report on Tuesday afternoon and Coherent's on Wednesday afternoon reset the group's tone, or simply extend today's give-back. Options positioning is already leaning defensive, with Coherent's full-chain put/call ratio at 1.19 and Lumentum's at 1.54. Knowing all of this, traders may want to size their positions carefully into the upcoming earnings releases. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Applied Optoelectronics and Coherent each surged 13% after Applied Optoelectronics nearly doubled its Q2 revenue to $192M, swinging from an $8.8M earnings loss to profitability. The SOXX semiconductors ETF gained 2% broadly, but a weaker-than-expected July jobs report cutting Fed rate-hike expectations gave AI-linked photonics stocks an added tailwind. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Optics and photonics stocks are shooting higher in Friday trading, led by Applied Optoelectronics (NASDAQ:AAOI) stock, which is up 13% to $140.72 following the company's latest quarterly report. Coherent (NYSE:COHR) stock is also up 13% to $379.26, while Lumentum (NASDAQ:LITE) stock is gaining 8% to $908.11 as investors extend the rally across the optical communications industry. The broader market is providing a favorable backdrop, with the NASDAQ 100 up 0.94% and the iShares Semiconductor ETF (NASDAQ:SOXX) up 2% to $543.89. A weaker-than-expected July jobs report has reduced expectations for another Federal Reserve interest-rate hike in September, giving growth-oriented technology stocks another reason for investors to remain constructive. Applied Optoelectronics stock is getting the strongest company-specific boost of the group after the optical networking specialist reported its second-quarter results. The quarterly print appears to have reinforced the bullish case around Applied Optoelectronics' exposure to artificial intelligence data centers and the growing demand for high-speed optical transceivers. Applied Optoelectronics reported second-quarter 2026 GAAP revenue of $191.9 million, versus $103 million in the 2025's second quarter. The company also posted non-GAAP net income totaling $5.5 million, versus a non-GAAP net loss of $8.8 million in the year-earlier quarter, as demand for the company's optical products continued to benefit from AI data-center investment. Applied Optoelectronics' second-quarter results exceeded expectations and provided investors with another indication that demand for high-speed optical networking products remains strong. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Applied Optoelectronics has been building capacity to support demand for 800G and 1.6T products, with management previously pointing to a significant growth ramp as additional manufacturing capacity comes online. The company's recent expansion of its Pearland, Texas, manufacturing footprint also gives Applied Optoelectronics more room to scale production as AI infrastructure investment continues. Coherent stock is advancing 13% despite the lack of an obvious company-specific catalyst Friday. Coherent's exposure to optical communications and other photonics applications gives the stock a natural connection to the same AI infrastructure spending trend that is helping lift Applied Optoelectronics. Lumentum stock is similarly moving higher without a fresh company-specific announcement driving the gain. The combination of stronger semiconductor sentiment, lower expectations for near-term interest-rate hikes and Applied Optoelectronics' earnings reaction appears to be encouraging investors to revisit the broader optical technology group. Applied Optoelectronics, Coherent and Lumentum shares all have exposure to the optical components and networking technologies needed to move increasingly large volumes of data through AI infrastructure. That makes the three stocks particularly sensitive to expectations for data-center spending, even though their individual businesses and financial profiles differ. The broader semiconductor move also matters for the group. With the iShares Semiconductor ETF up 2%, the Friday advance isn't limited to photonics stocks, although Applied Optoelectronics stock is showing considerably more strength than the broader semiconductor sector following its earnings report. The bullish case for Applied Optoelectronics stock rests on continued AI infrastructure spending, stronger demand for high-speed optical products and the company's ability to translate new manufacturing capacity into sustained revenue growth. Coherent stock and Lumentum stock could also benefit if data-center operators continue increasing their investments in optical networking equipment. However, investors shouldn't assume that every photonics stock will benefit equally from the AI buildout. Applied Optoelectronics, Coherent and Lumentum still face execution, valuation and demand risks, while a broader economic slowdown could eventually pressure technology spending even if lower interest-rate expectations provide a near-term tailwind. Investors can watch for whether Applied Optoelectronics can sustain the momentum signaled by its latest quarterly report and whether Coherent and Lumentum begin receiving company-specific catalysts of their own. Given the sharp moves already underway, investors choosing to participate in the photonics rally should consider keeping their position sizes moderate rather than chasing stocks after large single-day gains. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Applied Optoelectronics AAOI stock gained 16% in the pre-market hours on Aug. 7, 2026, after it released better-than-expected results on Aug. 6. In the second quarter of 2026, the company achieved its fifth consecutive quarter of record revenues, reaching $191.9 million, which marked an 86% year-over-year increase and a 27% sequential rise from the first quarter. This robust performance was attributed to strong demand in both the data center and CATV (cable television) businesses. AAOI shares have also skyrocketed 256.4% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s rise of 16.9% and the Zacks Electronics - Semiconductors increase of 33%. The company’s shares have also outperformed its peers, which include Lumentum LITE, Ciena CIEN, and Coherent COHR. All three companies are expanding their footprints in the optical networking market. Lumentum, Ciena and Coherent shares have surged 127.4%, 72.2% and 81.1%.The company is benefiting from the surge in AI infrastructure deployments that require high-speed optical transceivers. This demand is particularly strong for next-generation products such as 400G, 800G, and 1.6T transceivers, which are essential for hyperscale data centers supporting AI workloads.  In the second quarter of 2026, 800G revenues were $12.8 million, representing 11.9% of datacenter revenues, and more than doubled sequentially. Meanwhile, 400G revenues totaled $48.4 million, rising more than fourfold year over year and 27.4% sequentially. Image Source: Zacks Investment Research Applied Optoelectronics is benefiting from the powerful dual engines of its data center and CATV businesses. In the second quarter of 2026, Datacenter revenues reached $107.66 million, up 140.4% year over year and 32.3% sequentially. The business accounted for 56% of total revenues, supported by stronger shipments of high-speed optical transceivers used in AI-focused infrastructure.The company is benefiting from its aggressive expansion of U.S.-based manufacturing capacity. The company’s Texas footprint now exceeds 1.6 million square feet, with new facilities dedicated to high-speed transceiver production coming online. Manufacturing capacity for 800G and 1.6T products is expected to ramp up from 200,000 units per month to over 650,000 by year-end, and to 930,000 by the end of 2027. This expansion is critical, as current and forecasted demand for AAOI’s products continues to outpace supply, with customer orders already booked well into next year.The CATV business delivered record revenues of $80.6 million, up 43.8% year over year and 20.6% sequentially in the second quarter of 2026. This growth was fueled by large shipments of 1.8 gigahertz amplifiers to major customers and new wins such as being selected by Mediacom as the primary vendor for DOCSIS 4.0 network upgrades. The broad-based appeal of AAOI’s amplifiers and QuantumLink software, along with momentum among new MSO customers, has diversified the company’s revenue base and reduced reliance on any single market segment. AAOI expects CATV revenues to be between $100 million and $110 million in the third quarter of 2026 and expects to generate over $325 million annually in this segment. AAOI’s robust demand for its next-generation data center products, particularly driven by the rapid expansion of AI infrastructure and the company’s ongoing investments in manufacturing capacity, is expected to benefit the company’s top-line growth.For the third quarter of 2026, Applied Optoelectronics expects revenues between $255 million and $290 million. The Zacks Consensus Estimate for the third quarter is currently pegged at $270.28 million, indicating 127.84% year-over-year growth.Applied Optoelectronics expects non-GAAP earnings ranging from 11 cents to 26 cents per share. The consensus mark for earnings is currently pegged at 27 cents per share, which has remained unchanged over the past 30 days. This suggests an increase of 400% year over year. Applied Optoelectronics, Inc. price-consensus-chart | Applied Optoelectronics, Inc. Quote Despite its expanding portfolio, AAOI is suffering from production capacity and key component supply constraints, which have limited its ability to meet surging customer demand for next-generation AI infrastructure products. AAOI also faced temporary setbacks in its 100G product line in the second quarter of 2026 due to a memory shortage affecting customers’ ability to source switches. This is likely to result in a $20–25 million revenue shortfall in the third quarter of 2026. Operating expenses were also higher than expected, due to increased shipping costs and elevated R&D spending to qualify new products. Applied Optoelectronics shares are currently overvalued, as suggested by its Value Score of F.AAOI stock is trading at a premium with a trailing 12-month Price/Sales of 5.91X compared with the Electronics - Semiconductors industry’s 5.36X. Image Source: Zacks Investment Research Applied Optoelectronics is benefiting from robust and accelerating demand for its next-generation data center products (especially 800G and 1.6T transceivers), driven by AI infrastructure investments and its ability to rapidly expand manufacturing capacity and leverage in-house laser production.However, intensifying competition from larger rivals like Lumentum, Ciena and Coherent, production capacity constraints and supply chain challenges remain headwinds that could hurt the company’s financial performance. Stretched valuation also remains a concern.Applied Optoelectronics currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Coherent Corp. (COHR) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Applied Optoelectronics AAOI reported second-quarter 2026 non-GAAP earnings of 6 cents per share against a loss of 16 cents a year ago. The metric beat the Zacks Consensus Estimate by 100%. Revenues surged 86.4% year over year to $191.92 million and topped the consensus mark by 0.41%. The topline benefited from robust datacenter and CATV demand. Datacenter revenues more than doubled year over year, while 800G product revenues increased more than tenfold. Datacenter revenues reached $107.66 million, up 140.4% year over year and 32.3% sequentially. The business accounted for 56% of total revenues, supported by stronger shipments of high-speed optical transceivers used in AI-focused infrastructure. 800G revenues were $12.8 million, representing 11.9% of datacenter revenues, and more than doubled sequentially. Meanwhile, 400G revenues totaled $48.4 million, rising more than fourfold year over year and 27.4% sequentially. Management expects 800G revenues to increase nearly fivefold sequentially in the third quarter. Applied Optoelectronics, Inc. price-consensus-eps-surprise-chart | Applied Optoelectronics, Inc. Quote CATV revenues were a record $80.58 million, rising 43.8% year over year and 20.6% sequentially. The result was slightly above management's prior expectations of $75 million to $80 million.The company continued shipping significant volumes of 1.8 GHz amplifiers to its largest CATV customer. It also cited momentum with newer multiple-system operator customers and expects third-quarter CATV revenues between $100 million and $110 million. In the second quarter of 2026, on a non-GAAP basis, gross margin was 29.8%, down 60 basis points (bps) year over year but up 60 bps sequentially. Management continues to target gradual margin improvement, although near-term datacenter product mix remains a headwind.Adjusted EBITDA was negative at $0.54 million compared with a loss of $3.4 million in the year-ago quarter and positive adjusted EBITDA of $1 million in the preceding quarter. Non-GAAP operating expenses increased year over year as the company continued to invest in product development and capacity expansion. Research and development expense rose 68.8% year over year to $34 million, while sales and marketing expense increased 40.2% to $10.6 million. General and administrative expense climbed 59.8% year over year to $22.9 million, bringing total non-GAAP operating expenses to $67.6 million, up 60.6% year over year. Non-GAAP operating loss narrowed to $10.3 million from $10.8 million reported in the year-ago quarter. Total manufacturing capacity approached 200,000 units per month at quarter-end, up from nearly 100,000 units at the end of the first quarter. AAOI expects capacity for 800G and 1.6T products to exceed 650,000 units per month by year-end.Management said that forecast demand for 800G and 1.6T modules should exceed production capacity through mid-2027. The company expects initial production at its new 210,000-square-foot Sugar Land facility late in the third quarter and plans further capacity additions in Pearland and Houston. AAOI expects full qualification of its first 1.6T product with a major hyperscale customer within weeks of the earnings call, with shipments beginning later in the third quarter. Management said that it has more than $200 million of 1.6T orders in hand.The company expects at least $70 million of 1.6T revenues in the fourth quarter, although material availability remains a constraint. Separately, third-quarter 100G revenues are expected to decline because a customer cannot source enough 100G switches, creating a temporary offset to faster 800G growth. As of June 30, 2026, cash, cash equivalents, and restricted cash totaled $508.76 million, up from $449.38 million at the end of March.The company made $565.5 million of capital investments during the quarter, including $280 million of equipment prepayments. These expenditures primarily support expansion of 400G, 800G and 1.6T transceiver manufacturing capacity. For the third quarter of 2026, Applied Optoelectronics expects revenues between $255 million and $290 million. Non-GAAP gross margin is projected to be in the range of 29% to 30.5%. Non-GAAP net income is expected to be between $10.1 million and $24 million, translating into earnings of 11 cents to 26 cents per share based on approximately 92.8 million diluted shares. Management also continues to expect 2026 revenues of around $1.1 billion, with production capacity and component availability limiting near-term growth rather than demand. Applied Optoelectronics currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector include Applied Materials AMAT, Inuvo INUV and Analog Devices ADI. Each stock carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Materials shares have gained 105.3% in the year-to-date period. Applied Materials is set to report second-quarter 2026 results on Aug. 13.Shares of Inuvo have plunged 58.9% in the year-to-date period. Inuvo is set to report the second-quarter 2026 results on Aug. 11.Shares of Analog Devices have rallied 39.1% year to date. Analog Devices is slated to report fiscal third-quarter 2026 results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Inuvo, Inc (INUV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research