New York, Jan 5, 2026, 13:30 EST — Regular session
- Applied Optoelectronics shares reversed sharply after an early push above $41.
- The optical transceiver maker remains a volatile AI data-center optics play with heavy short positioning.
- Investors’ next focus is late-February earnings timing and execution on 800G shipments.
Applied Optoelectronics, Inc. (AAOI) shares fell nearly 11% on Monday, erasing an early jump that briefly lifted the stock above $41.
The retreat came even as broader U.S. equities and chip-related names traded higher, underlining how quickly positioning can flip in the optical components maker. Applied Optoelectronics sells optical transceivers — plug-in hardware that converts electrical signals into light to move data through fiber.
Why it matters now: the stock has become a high-beta proxy for capital spending on AI-linked data centers, where demand is shifting toward faster links. Investors are watching for clearer proof that new orders for “800G” products — 800-gigabit-per-second transceivers — are landing and shipping at scale.
Shares were down $4.25, or 10.7%, at $35.35 by 1:30 p.m. EST, after trading between $41.28 and $35.35. About 4.5 million shares had changed hands, roughly in line with the stock’s average daily volume, while the Invesco QQQ ETF was up about 0.8% and the VanEck Semiconductor ETF rose about 1.3%. 1
In its most recent quarterly update in November, the Sugar Land, Texas-based company reported third-quarter revenue of $118.6 million and forecast fourth-quarter revenue of $125 million to $140 million. It said it expected to exit 2025 with production capacity of around 100,000 units of 800G transceivers per month, with about 35% of that production in the United States.
In December, Applied Optoelectronics said it received its first volume order for 800G data-center transceivers from a major “hyperscale” customer — the largest cloud operators that run massive data centers. CEO Thompson Lin said, “We are pleased to receive our first volume order for our 800G products.” 2
The company said it remained on track to meet its year-end 800G shipment expectations and that those shipments could contribute $4 million to $8 million to fourth-quarter revenue. 2
A November SEC filing showed Applied Optoelectronics also set up a $180 million “at-the-market” equity program, which allows it to sell shares into the open market from time to time through Raymond James and Needham. Such programs can provide funding flexibility, but investors often flag dilution risk when share prices swing.
Short positioning adds another accelerant. About 19.5% of the public float — the shares available for trading — was sold short as of Dec. 15, MarketBeat data showed, meaning investors had borrowed and sold shares betting the price would fall. 1
But the downside case is execution: Applied Optoelectronics has said datacenter revenue can be affected by shipment timing and customer receiving schedules, and it is still working through qualification and ramp steps for higher-speed products. Any slip in deliveries or a pause in cloud spending could pressure results just as expectations rise. 2
