On October 1, Applied Optoelectronics rose 5.01% in regular trading, trading at $104.82/share, with turnover of $303 million. The rally was driven by a broad-based rebound across the optical communication sector.

On the news front, the optical communication sector continued its recovery from a sharp selloff on September 28, when Credo Technology plunged over 9%, Applied Optoelectronics dropped 7%, and Coherent fell nearly 6%. Peer stocks posted strong gains in the current session, with Lumentum surging over 8% and Ciena rising approximately 4%, reflecting ongoing technical recovery momentum across the sector.

On the catalyst side, Citi recently issued a $110 billion optical switching market forecast, while Morgan Stanley highlighted that optical communication production capacity is expected to be nearly sold out over the next 12 to 18 months, with indium phosphide substrate supply remaining a core bottleneck. These institutional views reinforced confidence in sustained industry demand, supporting the sector-wide upswing.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)