US Stock Market Move | Optical communication concept stocks saw a strong start, with Applied Optoelectronics (AAOI.US) rising over 7%.

On Monday, optical communication concept stocks strengthened in early trading, with Applied Optoelectronics (AAOI.US) rising over 7%, Marvell Technology, Inc. (MRVL.US) increasing nearly 5%, Credo Technology (CRDO.US) up almost 4%, and POET Technology (POET.US) gaining nearly 2%. In news, Applied Optoelectronics recently announced strong Q2 2026 performance. The companys management emphasized during the earnings call that the second quarter marked an important turning pointdriven by record revenue growth, the firm regained Non-GAAP profitability. Management indicated that demand related to AI infrastructure remains robust. At the same time, the company repeatedly highlighted that demand, especially for 800G and the upcoming 1.6T products, is exceeding its current production capacity. The guidance for Q3 performance suggests that the company expects revenue and profits to see significant increases. Guotai Junan Haitong noted that AAOI's performance met expectations, and capacity guidance was upgraded again. The vertically integrated (Scale up) optical interconnect technology, centered around CPO and NPO, has officially entered the phase of commercial deployment, opening up a new incremental market for the industry. The value weight of optical interconnect in AI computing clusters is expected to continue rising.