Optical Stocks Slump Led by AAOI Amid AI Infrastructure Funding Concerns

Key Facts

1Applied Optoelectronics stock fell 9% to $88 as doubts spread regarding the funding of AI infrastructure.

2Coherent and Lumentum shares both dropped 7% in a broader sell-off of optical networking suppliers.

Applied Optoelectronics stock fell 9% to $88 as doubts spread regarding the funding of AI infrastructure. According to 247wallst.com, the decline triggered a broader sell-off in the optical networking sector, with Coherent and Lumentum shares both dropping 7%.

AAOI closed at $97.78 on October 13, 2026, while COHR closed at $289.98 and LITE closed at $987.99 on the same date. The downward pressure stems from market fears that the massive capital expenditures required for AI infrastructure may face funding challenges or a potential slowdown in spending.