Optics Stocks Decline as AI Hardware Sentiment Wanes
Stocks in optical hardware companies are declining amid cooling investor sentiment toward AI infrastructure. Applied Optoelectronics (AAOI), Lumentum Holdings (LITE), and Coherent Corp. (COHR) each fell around 6% or more, while the iShares Semiconductor ETF (SOXX) dropped 3%, signaling sector-specific pressure rather than broad market weakness. The decline follows a sharp rise in these stocks earlier this year—AAOI surged over 225% and LITE nearly 160%. The coordinated sell-off reflects profit-taking after significant gains, with no major company announcements or macroeconomic triggers identified. Applied Optoelectronics faces additional pressure from reports of an $600 million at-the-market equity offering. The SPDR S&P 500 ETF (SPY) fell only slightly to $768.84, indicating the selloff is confined primarily to AI hardware stocks rather than affecting broader markets.
Tickers: $AAOI $COHR $GLW $LITE $SOXX $SPY