On August 12, Applied Optoelectronics rose 5.09% in regular trading, trading at $129.27/share, with turnover of $344 million. The stock rebounded after declining approximately 5% in the prior session when B. Riley cut its target price from $129 to $109 while maintaining a Neutral rating.

The rebound is underpinned by the company's strong Q2 earnings released earlier this month. Revenue reached $191.9 million, up 86% year-over-year, with data center business revenue surging approximately 140% to exceed $100 million for the first time. 800G product revenue grew over tenfold year-over-year, and management indicated customer demand exceeds supply capacity by 20% to 40%, with the supply-demand gap expected to persist through mid-2027.

Broader optical communication sector strength provided additional tailwinds, with Nokia rising 8.53%, Ciena up 6.03%, Arista Networks up 3.29%, and Lumentum gaining 2.56% in the same session.

(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.)