On June 2, Applied Optoelectronics rose 6.86% in regular trading, trading at $199.49/share, with trading volume of $758 million.

On the news front, prominent retail investor Serenity publicly declared AAOI as their top US photonics pick, suggesting the stock could be the next SanDisk. Serenity noted that photonics companies are approaching a revenue acceleration inflection point, expected around H1 2027, with the industry currently in a capacity buildout phase. Serenity disclosed building a position when AAOI traded near $28, driven by confidence in AI data center demand for high-speed optical interconnects.

Additionally, the company's Xinbei factory 800G optical module capacity has received production approval from a hyperscale customer, with monthly output expected to exceed 100,000 units by year-end, representing annualized capacity of over 1.2 million units. The broader Communication Equipment sector rallied in tandem, with Lumentum up 7.36%, Ciena up 5.33%, and Cisco up 3.42%, further supporting sector-wide momentum following a prior pullback driven by Q1 EPS miss and a $600 million ATM offering overhang.

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