New York, Jan 5, 2026, 11:30 a.m. ET — Regular session
Applied Optoelectronics, Inc shares fell about 8% to $36.43 in late morning trade on Monday, after earlier touching $41.28. The Nasdaq-listed stock opened at $41.05 before sliding to session lows.
The pullback lands as investors reprice a fast-moving “AI optics” theme, where small shifts in risk appetite can whipsaw suppliers of high-speed links inside cloud data centers. In December, the company said it received its first volume order for 800G data-center transceivers — optical modules that move data at 800 gigabits per second — from a major “hyperscale” customer, industry shorthand for a very large cloud operator. “We are pleased to receive our first volume order for our 800G products,” CEO Thompson Lin said, adding that the company expected those shipments could contribute $4 million to $8 million to fourth-quarter revenue. 1
The next test is whether Applied Optoelectronics can translate those orders into steadier quarterly results and expand margins as volumes ramp. The company reported third-quarter revenue of $118.6 million in November and forecast fourth-quarter revenue of $125 million to $140 million, with non-GAAP gross margin — an adjusted profitability metric that strips out certain expenses — of 29% to 31%. CFO Stefan Murry said the company expected to exit 2025 with capacity of around 100,000 units of 800G transceivers per month, with about 35% produced in the U.S.
Monday’s move tracked a broader drop across optical and networking names, even as the wider market pushed higher. Lumentum, Ciena and Coherent fell between roughly 4% and 7%, while the Dow was up about 1.2% and the Nasdaq about 0.9% earlier in the session, according to Reuters. 2
Applied Optoelectronics’ slide also follows a sharp prior-session jump. The shares ended Friday at $39.60, up 13.6% on the day, after closing the previous session at $34.86, company quote data showed. 3
Beyond transceivers, the company has been pitching new components for the next wave of optical buildouts. In December it introduced a 400-milliwatt pump laser aimed at silicon photonics and “co-packaged optics,” an architecture that pushes optical connections closer to high-performance chips to cut power use and boost speed; the company said samples were available to select customers, with volume production expected later in 2026. 4
Risks cut both ways for a stock that has swung sharply over the past year. In a November prospectus supplement, the company disclosed it could sell up to $180 million of common stock “at the market,” meaning shares can be issued into ordinary trading over time — a structure that can dilute existing holders if used heavily. The filing also flagged risks tied to smaller or delayed customer orders, shipment timing and reliance on a small number of customers.
