On June 25, Applied Optoelectronics declined 5.73% in regular trading, trading at $135.76/share, with turnover of $525 million.

On the news front, the decline was primarily driven by persistent bearish sentiment surrounding co-packaged optics (CPO) mass production timelines. A SemiAnalysis report previously indicated that large-scale CPO 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 rapid near-term volume ramp. Although NVIDIA responded that CPO switches would begin mass production in the second half as planned, Morgan Stanley's assessment largely aligns with the bearish SemiAnalysis view, intensifying bull-bear divergence and amplifying selling pressure on high-valuation optical communication names.

Within the Communication Equipment sector, Lumentum fell 2.43%, Cisco fell 0.58%, Nokia fell 0.14%, while Ciena rose 0.47% and Arista Networks rose 1.77%.

Applied Optoelectronics is a leading supplier of fiber-optic networking products, focused on cable television, fiber-to-the-home, and data center markets, and is among 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.)