Applied Optoelectronics Stock Drops Sharply Amid Concerns Over Slower Tech Spending
Shares of Applied Optoelectronics (AAOI) fell by 23.6% this week, extending a broader decline that has left the stock down nearly two-thirds from its 52-week high as concerns mount over potential slowdowns in AI infrastructure spending among major tech companies. The sell-off was triggered after Broadcom CEO Hock Tan warned about capital access and funding constraints affecting artificial intelligence development. This led to broad declines across photonics component makers, with Applied Optoelectronics being hit harder than some peers like Lumentum Holdings (LITE) and Coherent (COHR). The company had previously raised $600 million through an at-the-market equity offering to expand its 800G optical transceiver manufacturing capacity. Investors are now watching for Applied Optoelectronics' third-quarter earnings report on Nov. 5, which will provide insight into demand trends and the impact of ongoing capital expenditures.
Topics: AI infrastructure spending fears Applied Optoelectronics optical hardware