On June 26, Applied Optoelectronics declined 5.08% overnight, trading at $131.89/share, with turnover of $6.58 million. The decline was primarily driven by persistent pessimistic expectations surrounding Co-Packaged Optics (CPO) technology commercialization timelines.

According to industry research, CPO large-scale adoption may be delayed to 2028 or even 2029, with system-level yield potentially as low as approximately 19.4%, significantly below market expectations for near-term volume ramp. While NVIDIA has stated its CPO switches will begin mass production in the second half as planned, Morgan Stanley's assessment that CPO volumes may fall short of expectations has intensified bull-bear divergence across the sector, sustaining pressure on highly-valued optical communications names.

Within the Communication Equipment sector, the broader group remained under pressure. Lumentum fell 3.48%, Nokia declined 3.08%, Ciena dropped 1.88%, and Arista Networks lost 1.47%.

Applied Optoelectronics is a leading fiber-optic networking products supplier focused on cable television, fiber-to-the-home, and data center network markets, and is among the few U.S.-based AI optical module manufacturers with proprietary InP laser production capabilities.

(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.)