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.
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.
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.
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. Trefis
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. GlobeNewswire
“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. GlobeNewswire
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.
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.
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.
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.
