Applied Optoelectronics (AAOI) stock plummeted 15.77% during intraday trading on Thursday, marking a sharp reversal from recent gains.
The decline occurred despite the company securing its first bulk order for 1.6T data center transceivers from a major long-term hyperscale customer, a deal aimed at increasing network bandwidth for AI workloads. The stock had surged 102% over the previous ten trading sessions, which created significant pressure for profit-taking after the rapid price appreciation.
The movement contributed to a broader downturn in the optical communications sector during the session.
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