Key Highlights

  • Shares were down 6.28% at $52.35 in pre-market, from a $55.86 prior close after a 15.60% gain on Wednesday.
  • Market data said CoreWeave's results lifted optical stocks, and the Philadelphia Semiconductor index rose about 7%.
  • The rally partly reversed a post-earnings slide that followed a fourth quarter Revenue guide below consensus.
  • Investors weighed Texas expansion delays, dilution and funding needs.
  • The company is unprofitable on a GAAP basis, with trailing Earnings per share of negative $0.33.

Applied Optoelectronics (NASDAQ:AAOI) shares were down 6.28% at $52.35 in pre-market on Thursday, from a prior close of $55.86. The fiber-optic networking products maker gave back part of a 15.60% rally on Wednesday, when AI infrastructure stocks rose after CoreWeave (NASDAQ:CRWV) reported results and raised its 2026 outlook.

Wednesday's Rally Lifted Optical Names

Market data said CoreWeave's strong quarter, which showed revenue up 168% and capacity booked through 2027, revived Demand for AI infrastructure suppliers. Optical peers rose, and the Philadelphia Semiconductor Index jumped about 7%. Applied Optoelectronics closed at $55.86 on above-average volume.

The move reversed part of a post-earnings slide that followed a fourth quarter revenue guide of $385 million to $420 million, below the roughly $427 million consensus.

Financing and Expansion Concerns Remain

Market commentary also pointed to analyst price-target cuts, new Debt Financing and heavy cash burn after the company's report. Investors are still weighing a delay to the Texas expansion, share dilution and funding needs tied to a multi-year hyperscaler agreement for 1.6T products.

About the Business

Applied Optoelectronics designs and manufactures lasers, optical components and high-speed transceivers from 400G to 1.6T for AI and hyperscale Data Center operators, as well as cable TV and telecom customers. It runs vertically integrated laser Manufacturing facilities in the U.S., Taiwan and China, with about 4,700 employees. Trailing revenue is roughly $596 million, and market data cited an 86% year-over-year increase in the second quarter of 2026.

Sector Backdrop and What Comes Next

Nasdaq-100 futures were down about 0.9%, with chip stocks under pressure after reports that the board of Nvidia (NASDAQ:NVDA) is weighing its CEO's future. Nvidia shares were down about 8% in pre-market. Applied Optoelectronics has traded between $18.50 and $233.67 over 52 weeks, and pre-market quotes may change before the regular session opens.