Movement Alert｜Applied Optoelectronics Falls 7.84% in Regular Trading, CPO Mass Production Delay Expectations Continue to Pressure Optical Communications Sector

Market Focus06-23 22:13

On June 23, Applied Optoelectronics fell 7.84% in regular trading, trading at $157.86/share, with turnover of $473 million. The decline was driven by persistent bearish sentiment surrounding CPO (Co-Packaged Optics) mass production timelines.

A recent SemiAnalysis report indicated that large-scale CPO adoption could be delayed to 2028 or even 2029, with system-level yields potentially as low as approximately 19.4% — far below market expectations for near-term volume ramp. Morgan Stanley's Greater China hardware and semiconductor team echoed a similar view that CPO volume may fall short of expectations. While NVIDIA responded that CPO switches remain on track for mass production in the second half of this year, the divergence between bullish and bearish camps has intensified volatility.

Within the Communication Equipment sector, broad weakness persisted. Lumentum fell 5.54%, Nokia declined 4.44%, Arista Networks dropped 6.22%, and Cisco fell 1.77%. Applied Optoelectronics is a leading fiber-optic networking products supplier and one of few U.S.-based manufacturers with in-house InP laser production capability for AI optical modules.

(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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