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Applied Optoelectronics Slides 4.5% As AI Optics Selloff and Share-Supply Overhang Weigh on Sentiment

Investivoq PriceTracker

Applied Optoelectronics, Inc. (AAOI) is down 4.5% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver appears to be a broader selloff in AI infrastructure and optical-networking stocks rather than a fresh deterioration in Applied Optoelectronics’ business. Additional pressure may be coming from equity-supply concerns tied to the company’s existing at-the-market stock program and a new insider sale notice filed on October 13.

Details:

  • AAOI has been trading with other AI optics names, and the group has been under pressure as investors reassess whether aggressive AI infrastructure spending will keep generating attractive returns.
  • A Form 144 filed with the SEC on October 13 shows CFO Stefan Murry proposed selling 4,000 shares, which can add short-term sentiment pressure even when the size is modest.
  • The company also has a previously disclosed at-the-market equity distribution agreement that allows it to sell up to $600 million of common stock over time, leaving a potential dilution overhang in the background.
  • Fundamentals were recently strong: Applied Optoelectronics posted record second-quarter 2026 revenue of $191.9 million and returned to non-GAAP profitability, suggesting today’s decline is more about positioning and risk appetite than a newly reported operating setback.

    • Sources:

    SEC, Applied Optoelectronics, Reuters

    Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

    $AAOI Insider Trading Activity

    AAOI Insider Trades

    $AAOI insiders have traded $AAOI stock on the open market 27 times in the past 6 months. Of those trades, 0 have been purchases and 27 have been sales.

    Here’s a breakdown of recent trading of $AAOI stock by insiders over the last 6 months:

    • HUNG-LUN (FRED) CHANG (*** See Remarks) has made 0 purchases and 5 sales selling 144,131 shares for an estimated $22,714,837.
    • CHIH-HSIANG (THOMPSON) LIN (President and CEO) has made 0 purchases and 2 sales selling 117,000 shares for an estimated $19,874,350.
    • SHU-HUA (JOSHUA) YEH (*** See Remarks) has made 0 purchases and 9 sales selling 101,980 shares for an estimated $17,023,489.
    • STEFAN J. MURRY (Chief Financial Officer) has made 0 purchases and 7 sales selling 86,000 shares for an estimated $14,025,811.
    • CYNTHIA DELANEY sold 56,575 shares for an estimated $10,705,602
    • DAVID C KUO (*** See Remarks) has made 0 purchases and 2 sales selling 48,454 shares for an estimated $8,198,442.
    • MIN-CHU (MIKE) CHEN sold 8,247 shares for an estimated $1,657,647

    To track insider transactions, check out Investivoq's insider trading dashboard. You can access data on insider stock transactions through the Investivoq API insider transaction endpoint.

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    $AAOI Hedge Fund Activity

    We have seen 295 institutional investors add shares of $AAOI stock to their portfolio, and 193 decrease their positions in their most recent quarter.

    Here are some of the largest recent moves:

    • JANE STREET GROUP, LLC removed 1,715,761 shares (-75.3%) from their portfolio in Q2 2026, for an estimated $254,207,149
    • PRICE T ROWE ASSOCIATES INC /MD/ removed 1,621,448 shares (-93.6%) from their portfolio in Q2 2026, for an estimated $240,233,735
    • INVESCO LTD. added 1,399,857 shares (+69.5%) to their portfolio in Q2 2026, for an estimated $207,402,813
    • D. E. SHAW & CO., INC. removed 1,325,800 shares (-97.0%) from their portfolio in Q2 2026, for an estimated $196,430,528
    • CLEAR STREET GROUP INC. added 1,231,143 shares (+inf%) to their portfolio in Q2 2026, for an estimated $182,406,146
    • UBS GROUP AG added 1,140,720 shares (+117.5%) to their portfolio in Q2 2026, for an estimated $169,009,075
    • JPMORGAN CHASE & CO added 1,068,246 shares (+inf%) to their portfolio in Q2 2026, for an estimated $158,271,327

    To track hedge funds' stock portfolios, check out Investivoq's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Investivoq API 13F endpoint.

    $AAOI Analyst Ratings

    Wall Street analysts have issued reports on $AAOI in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

    Here are some recent analyst ratings:

    • Rosenblatt issued a "Buy" rating on 05/08/2026

    To track analyst ratings and price targets for $AAOI, check out Investivoq's $AAOI forecast page.

    This article is not financial advice. See Investivoq's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.