Applied Optoelectronics Slumps 10%, Lumentum Dives 9%, Coherent Drops 6% as AI Optics Profit-Takers Strike

AI infrastructure stocks are pulling back, with Applied Optoelectronics down 10% in midday trading, Lumentum off 9%, and Coherent lower by 6%. The move suggests a cooling in sentiment toward the hottest corner of the AI trade rather than a company-specific fundamental catalyst. The article is primarily a sector rotation and momentum reset story, with limited broader market impact.

Analysis

AI infrastructure stocks are pulling back, with Applied Optoelectronics down 10% in midday trading, Lumentum off 9%, and Coherent lower by 6%. The move suggests a cooling in sentiment toward the hottest corner of the AI trade rather than a company-specific fundamental catalyst. The article is primarily a sector rotation and momentum reset story, with limited broader market impact.