On August 24, AXT Inc fell 8.21% in regular trading, trading at $64.88/share, with turnover of $77.62 million. The decline was driven by a sector-wide selloff in optical communication stocks following NVIDIA's announcement that its co-packaged optics (CPO) technology has officially entered mass production.
The catalyst was compounded by SK Hynix and academic institutions publishing a CPO roadmap paper in Nature Electronics, outlining a long-term vision to extend optical interconnects to memory interfaces. Market participants grew concerned that CPO technology could reshape the existing supply chain structure and challenge the market position of traditional pluggable optical modules. Pre-market, Applied Optoelectronics fell nearly 12%, AXT Inc dropped over 5%, while Coherent and Lumentum declined more than 4%.
Despite indium phosphide substrates remaining an irreplaceable core material for light sources within CPO architectures, short-term sentiment triggered indiscriminate selling across the entire optical communication sector. Within the Semiconductor Equipment sector, Applied Materials fell 0.97%, ASML fell 0.58%, KLA Corporation fell 2.05%, Lam Research fell 3.26%, and Teradyne fell 4.73%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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