On July 17, Applied Optoelectronics fell 5.36% in regular trading, trading near $99.47/share, with turnover of $266 million. The decline came amid a continued broad-based selloff in the optical communication sector, with industry-wide selling pressure showing no signs of abating.

The optical communication sector suffered heavy losses, with Credo dropping over 10%, while Corning and Lumentum each fell more than 7%. A strategist at Resona Holdings noted that high-tech stocks are undergoing a correction, with semiconductor and optical stocks diverging from the broader market. The recent volatility appears driven more by supply-demand dynamics and leveraged fund unwinding rather than fundamental deterioration, citing leveraged ETF-related issues in Korea and a significant increase in margin buying by Japanese retail investors in recent weeks.

AAOI had surged over 9% on July 9 fueled by AI computing infrastructure tailwinds, but has since given back those gains entirely amid sustained profit-taking. A brief oversold bounce on July 14 was fully erased, with the stock retreating from its recent high of approximately $120 to below $100.

(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.)