Applied Optoelectronics (AAOI) stock soared 5.39% during intraday trading on Tuesday, as the optical components manufacturer participated in a broad sector advance.

The move was driven by continued rebound momentum across the optical communication sector. Following a previous period of profit-taking, the sector has regained upward momentum, with multiple companies in the space seeing increased buying interest during the session.

Applied Optoelectronics, as a leading supplier of fiber-optic networking products, benefited from this sector-wide valuation recovery alongside other optical communication players.