On July 29, Applied Optoelectronics declined 5.04% overnight, trading at $83.09/share with turnover of $9.06 million. The decline extends the broad sell-off in optical communications stocks triggered by Corning's disappointing Q3 revenue guidance.

Corning reported Q2 core revenue of $4.74 billion (+17% YoY) and core EPS of $0.78 (+30% YoY), but its Q3 core sales guidance of $4.9-5.0 billion disappointed the market, with the midpoint of $4.95 billion slightly below consensus. Despite securing multi-billion-dollar agreements with Amazon and a long-term Nvidia partnership, Corning's implied sequential revenue growth decelerated from 9% in Q2 to just 3-6%, raising concerns about the pace of AI infrastructure spending. The sector remained broadly weak, with Lumentum down 4.73%, Ciena down 3.85%, and Nokia down 3.47%. Applied Optoelectronics has now declined over 40% in July, though the stock remains up approximately 153% year-to-date.

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