Key Highlights

  • Shares were trading down 8.76% at USD 48.22 on Friday, November 13, 2026 in market data, extending a slide that began after third-quarter results on November 5.
  • Third-quarter Revenue was USD 269.9 million versus USD 118.6 million a year earlier and USD 191.9 million in the second quarter, with datacenter sales of USD 155.6 million.
  • Fourth-quarter guidance calls for revenue of USD 385 million to USD 420 million and non-GAAP Earnings of USD 0.48 to USD 0.63 a share on about 96 million shares.
  • Non-GAAP gross Margin slipped to 28.7% from 31.0% a year earlier, and GAAP Net Income of USD 6.3 million came despite a GAAP operating loss of USD 1.4 million.

Third-Quarter Beat Followed by a Sharp Drop in Shares

Applied Optoelectronics (NASDAQ:AAOI) was trading down 8.76% at USD 48.22 on Friday, November 13, 2026, in market data that is the figure of record for the live session only. No company announcement dated November 12 or 13 explaining the move was found. The company makes optical transceivers and lasers for data centers and cable television networks. It reported third-quarter results on November 5, 2026: revenue of USD 269.9 million matched a published estimate of about USD 268 million, and non-GAAP earnings of USD 0.17 a share topped a USD 0.14 estimate. A published report said the shares fell about 15% on November 5 and were near USD 49.50 by November 10, though the timing against the release was unclear.

Datacenter Growth Meets a Thinner Margin and Power Delays

Datacenter revenue rose to USD 155.6 million from USD 43.9 million, while cable television revenue was USD 110.9 million. Non-GAAP gross margin fell to 28.7% from 29.8% in the second quarter and 31.0% a year earlier. GAAP net income was USD 6.3 million, but the operating line was a loss of USD 1.4 million and other income of USD 8.2 million bridged the gap. Management said United States capacity expansion is delayed because electrical power is taking longer to secure. It targets over 500,000 units a month of 800G and 1.6T products by the end of 2026 and over 1 million by the end of 2027, and cited a new multi-year agreement with a Tier 1 hyperscale customer.

Sector Volatility and a Larger Cash Cushion Frame the Risk

Optical names have moved together in recent weeks. A published report tied the November 5 selloff in AI and chip shares, when the S&P 500 fell 4.36%, to fears that tighter rules could slow data-center construction after the midterm elections. A rebound followed on November 9, and a hotter October Inflation report arrived on November 10. No driver specific to November 13 was verified, so the move reads as part of that volatility. Cash, cash equivalents and restricted cash were USD 621.5 million at September 30, 2026, against USD 216.0 million at December 31, 2025. Small price moves in a stock with this much AI exposure can reverse quickly.

Where Things Stand

Mostly sector pressure, on the evidence found. Applied Optoelectronics (NASDAQ:AAOI) is down 8.76% in a group that has swung sharply since November 5, and no company news from November 12 or 13 was located. Its own numbers show faster revenue, a thinner gross margin and a delayed United States build, which can keep the stock sensitive to every AI-spending headline. Next markers are fourth-quarter delivery against the USD 385 million to USD 420 million guide, evidence that power access is improving, and any further hyperscaler agreements.