NEW YORK, December 29, 2025, 11:56 ET — Regular session
- Applied Optoelectronics down 0.9% at $36.85 after swinging between $36.17 and $39.15
- Optics peers Lumentum, Coherent and Ciena fell as U.S. tech stocks eased
- Focus remains on AAOI’s 800G data-center rollout and fourth-quarter outlook
Applied Optoelectronics shares were down 0.9% at $36.85 in late morning trading on Monday, after swinging between $36.17 and $39.15 as volumes stayed elevated.
The reversal kept the spotlight on the fiber-optics supplier after a sharp pullback late last week, when traders began locking in gains following a run to fresh highs. 1
That matters because AAOI has become a high-beta proxy for investor appetite around AI data-center buildouts, where cloud operators are upgrading to faster optical links to move data between servers. 2
Broader market tone was cautious, with the Nasdaq-heavy Invesco QQQ down 0.7% and the S&P 500 tracker SPY off 0.5%. Optical networking names Lumentum fell 4.1%, while Coherent and Ciena were down about 2% each.
Trefis, a financial analysis site, wrote on Saturday that the recent drop looked like technical profit-taking rather than a reaction to a new company headline, after the stock touched a new 52-week high of $41.96. 1
The firm said traders were watching whether the shares could reclaim the $38 area, a “pivot” zone on price charts that often acts as short-term support or resistance. 1
Applied Optoelectronics said on Dec. 10 it received its first volume order for 800G data-center transceivers from a major hyperscale customer. “800G” refers to 800 gigabits per second, a speed class used in high-end data center networking. 2
“We are pleased to receive our first volume order for our 800G products,” CEO Dr. Thompson Lin said. The company said the 800G shipments it previously discussed could contribute $4 million to $8 million to fourth-quarter revenue. 2
In its most recent quarterly report, the company forecast fourth-quarter revenue of $125 million to $140 million. It also projected a non-GAAP, or adjusted, gross margin of 29% to 31% — a metric that excludes certain items to show underlying performance. 3
CFO Stefan Murry said at the time that data-center revenue came in slightly below expectations due to shipping and receiving delays, while the company worked to expand 800G production capacity. 3
The next major catalyst is the company’s fourth-quarter results, expected in late February; Zacks Investment Research lists Feb. 25 as the expected release date based on reporting patterns. 4
Until then, traders are likely to keep one eye on day-to-day volatility and whether the stock can stabilize after its late-December whipsaw, with fresh updates on orders or production ramp likely to be the next drivers.
