US Stock Market Move | Optical communication concept stocks surged, with Applied Optoelectronics (AAOI.US) rising by more than 12%.

On Friday, stocks related to optical communications saw a broad increase, with Applied Optoelectronics (AAOI.US) rising over 12%, Coherent (COHR.US) up more than 10%, Lumentum (LITE.US) increasing over 6%, POET Technologies (POET.US) gaining over 5%, Corning Inc (GLW.US) rising over 4%, and Marvell Technology, Inc. (MRVL.US) up 4%. On the news front, on August 6, Applied Optoelectronics announced its second-quarter financial report, revealing revenues of $191.9 million, a year-on-year increase of 86.4%. The data center business revenue surpassed $100 million for the first time, showing a 140% year-on-year growth, and the non-GAAP net profit reached profitability. The company also provided third-quarter guidance ranging from $255 million to $290 million, maintaining its annual revenue target of approximately $1.1 billion. During the earnings call, the company's management stated that the demand related to AI infrastructure is robust, with customer demand exceeding the company's current supply capacity by about 20% to 40%. Revenue from 800G products more than doubled quarter-on-quarter, and the company expects nearly a fivefold increase in the third quarter. The company disclosed that its 1.6T product is nearing completion of customer certification and is set to begin shipments, with over $200 million in orders already secured, most of which will be delivered in the fourth quarter.