EL7.AI
StocksMedium•14 July 2026•
1 min read

Applied Optoelectronics and Lumentum Rally on AI Optics Expansion

Key Facts

1Applied Optoelectronics shares jumped 6% to $119.10 following news of a major manufacturing expansion in Texas.
2Lumentum shares climbed 5% as the AI-driven optics trade gained momentum.

Amid the accelerating race to build out cloud computing infrastructure, optical component stocks saw strong momentum reflecting investor optimism in networking hardware. Applied Optoelectronics shares jumped 6% to $119.10 following news of a major manufacturing expansion in Texas. Similarly, Lumentum shares climbed 5% as the AI-driven optics trade gained traction, helping the stocks rebound from previous losses according to reports.

This rally coincides with analyst expectations for significant growth in the optical transceiver market, with LightCounting estimates suggesting a compound annual growth rate exceeding 15% through 2028 driven by AI data center demands. In comparison to peers, recent results from Coherent (COHR) showed robust growth in high-speed optics sales, reinforcing sector-wide confidence.

Traders should monitor technical support levels for 0JVV.L near $762.22, the low reached as of the July 13, 2026 close, to gauge the sustainability of the upward trend. Looking ahead, the release of the FOMC Minutes will be a key catalyst for broader tech sentiment. Additionally, upcoming inflation data from China and the US this week will provide clarity on manufacturing costs and global supply chain dynamics for the semiconductor and optics industries.