Applied Optoelectronics surged 15% and Lumentum jumped 6%, with the intraday rally building on recent earnings strength and no confirmed same-day catalyst. Broadcom dropped 5% as component suppliers rallied, with Wolfe Research flagging its $30B in residual value guarantees as a longer-term AI oversupply risk. Applied Optoelectronics is up 465% and Lumentum 632% over one year, making position sizing the primary risk for investors entering these names now.
It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Optics stocks are climbing through Friday's midday session, and the character of the move matters. Corning (NYSE:GLW) opened close to flat and then worked higher, with shares up roughly 4.5% intraday. Lumentum (NASDAQ:LITE) is up about 5%, and Applied Optoelectronics (NASDAQ:AAOI) is out front, up around 5%.
Coherent (NYSE:COHR) is tacking on roughly 1.3%. This buying built intraday, absent any overnight press release. Traders are pricing off a well-defined earnings setup, with no confirmed same-day catalyst driving the optics leg higher.
Lumentum reported Q4 revenue of $1.01 billion, up 109% year over year, on August 11, and guided Q1 FY27 revenue to $1.225 billion to $1.275 billion with EPS of $4.05 to $4.35, hitting its target operating model "more than a quarter ahead of schedule." Coherent followed on August 12 with revenue of $2.05 billion, up 33.7% year over year, and non-GAAP EPS of $1.74. Applied Optoelectronics posted a fifth consecutive quarter of record revenue on August 6, with CEO Thompson Lin telling investors "demand will continue to outpace our production capacity through mid-2027." Details are in Lumentum's 8-K filing on SEC.gov. SoFi Active Invest is offering a limited-time promotion.
Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. There's also tariff-protection chatter on social media following the August 4 reports of a possible U.S. ban on Chinese transceivers, which had already moved these names earlier this month.
I could not verify a new optics tariff or transceiver ban announced today. Treat that as speculation, not fact. The more interesting big name to watch today, Broadcom (NASDAQ:AVGO) is down roughly 4.7% even as the S&P 500 sits near a record high, the Nasdaq is in the green, and chipmakers are broadly higher.
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