On June 24, Applied Optoelectronics declined 5.7% in regular trading, trading at approximately $138.88/share, with turnover of $418 million. The stock has experienced sustained selling pressure amid persistent bearish sentiment surrounding the optical communications sector.

On the news front, a SemiAnalysis report previously indicated that large-scale CPO (Co-Packaged Optics) adoption may be delayed to 2028 or even 2029, with system-level yield potentially as low as approximately 19.4% — far below market expectations for near-term rapid volume growth. This pessimistic assessment continues to pressure high-valuation optical communications stocks. While NVIDIA has responded that CPO switches will begin mass production in the second half as planned, Morgan Stanley's view on CPO volume falling short of expectations aligns closely with SemiAnalysis, intensifying bull-bear divergence in the market.

Within the Communication Equipment sector, Lumentum fell 0.8%, Cisco declined 0.52%, Ciena dropped 0.62%, and Ondas Holdings fell 6.45%, while Nokia edged up 0.14%.

Applied Optoelectronics is a leading supplier of fiber-optic networking products, serving cable television, fiber-to-the-home, and data center network markets. It is one of the few U.S.-based manufacturers with in-house InP laser production capability for AI optical modules.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)