Applied Optoelectronics' stock plummeted 6.28% during intraday trading on Thursday, as investors took profits following recent sharp gains.
The decline comes amid conflicting signals regarding the timeline for Co-Packaged Optics (CPO) technology adoption. While a previous SemiAnalysis report suggested CPO mass production would be delayed until after 2028 - which had been interpreted as bullish for traditional optical module suppliers like Applied Optoelectronics - subsequent reports indicated NVIDIA executives stated CPO would begin ramping in the second half of the year.
This contradiction has caused investors to reassess the duration of demand for traditional pluggable optical modules, prompting concentrated selling after the stock's rapid two-session advance.