NEW YORK, Feb 2, 2026, 11:26 EST — Regular session
- Shares of Applied Optoelectronics climbed close to 10% during late morning trading, extending an already volatile rally.
- The stock has bounced around by double digits over recent sessions, pulling momentum traders back in.
- Attention now turns to optics-sector read-throughs ahead and AAOI’s late-February earnings report.
Applied Optoelectronics shares jumped 9.8% to $47.87 in late morning Nasdaq trading on Monday, swinging between $41.56 and $49.00. By 11:15 a.m. EST, volume had surged past 3.7 million shares.
The jump is significant since AAOI now serves as a quick barometer for investor sentiment on network spending linked to cloud data centers and broadband upgrades. When this theme heats up, smaller optical-component stocks often surge sharply on minimal fresh news.
This matters now because the stock is moving like a positioning play ahead of the company’s upcoming results, with traders pushing it to swing sharply both ways. That kind of volatility can amplify any headline — or the absence of one.
AAOI’s stock swings have been wild, even for a growth name. Shares jumped 21% on Jan. 28, then plunged 12.5% the following day before bouncing back 10.2% on Jan. 30, per MarketScreener data. (MarketScreener)
Applied Optoelectronics produces fiber-optic networking gear for internet data centers, cable TV systems, telecom, and fiber-to-the-home connections, according to a filing. The company states it designs and manufactures everything from components and subassemblies to fully finished modules and equipment. (SEC)
During the latest earnings call, investor relations confirmed the company’s Q4 and full-year 2025 earnings call is “currently scheduled for February 26, 2026.” CEO Thompson Lin told analysts that hyperscale customers — the big cloud operators — “are really serious,” emphasizing, “It’s not a bubble.” CFO Stephen Murry noted production ramp-up is “largely constrained by our ability to build and qualify production capacity.” (Investing)
Other optics companies will draw investor attention this week for clues on demand and pricing trends. Lumentum, a bigger player in optical and photonics equipment, is set to release its fiscal second-quarter earnings on Feb. 3. (Lumentum Investor Relations)
That run, however, goes both ways. AAOI’s recent volatility highlights just how fast sentiment shifts in a crowded trade, with the stock offering almost no buffer if earnings or forecasts fall short of expectations.
Traders are watching closely for new company updates, customer feedback, or sector cues that could spark the next move — up or down. The heavy volume points to a lot of quick money already in play.
AAOI’s next major event is the earnings call set for Feb. 26. But before that, the market will zero in on optics-sector results on Feb. 3 as an early gauge of whether this rally can hold up.
