Applied Optoelectronics, Lumentum, and Coherent shares fall 6-10% as profit-taking hits AI-linked optical component stocks.
Shares of AI optics suppliers tumbled in midday trading, with Applied Optoelectronics (AAOI) down 10%, Lumentum (LITE) off 9%, and Coherent (COHR) slipping 6%. The declines follow a sharp rally, with Lumentum surging 1,148% over the past year and Coherent up 385.2% year-to-date.
The sector has been a key beneficiary of AI-driven data center expansion, as hyperscalers ramp up demand for high-speed interconnects. However, stretched valuations and technical exhaustion appear to be driving the pullback, with no specific negative catalyst identified.
Profit-taking is concentrated in the most extended stocks, a typical pattern after prolonged gains. The broader AI infrastructure trade remains under scrutiny as investors assess sustainability.