Stock Track | Applied Optoelectronics Plummets 5.65% Intraday as Profit-Taking Follows Strong Rally Despite Upgraded Guidance

Stock Track
May 14

Applied Optoelectronics (AAOI) stock plummeted 5.65% during intraday trading on Thursday, marking a significant pullback after a powerful multi-session rebound.

The decline comes as traders appear to be taking profits following a rapid recovery that saw shares surge from around $156 to over $200 in recent days. This movement follows the company's Q1 earnings report, where both revenue and earnings per share missed market expectations, creating underlying pressure despite positive forward-looking developments.

Notably, Applied Optoelectronics issued significantly upgraded forward guidance alongside its earnings, including a major first batch 1.6T order from a new hyperscale customer, two additional 800G orders, and plans to expand laser production capacity by approximately 350% at its Texas facility by the end of 2027. The company also outlined its ELSFP external light source module roadmap, targeting monthly volume of roughly 400,000 units by end of 2027.

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