Applied Optoelectronics Rallies 6%, Lumentum Climbs 5% as Texas Expansion Fuels AI Optics Trade

Applied Optoelectronics climbed about 6% in early trading Tuesday, rebounding after a weaker Monday, as a Texas expansion boosted optimism for AI optics. Shares rose to $119.10 for Applied Optoelectronics, while Lumentum added roughly 5% to $806.81 and Coherent increased about 1% to $310.11, moving in sympathy with demand trends for 800G and 1.6T transceivers used in AI data-center networking. Applied Optoelectronics broke ground on its Pearland, Texas campus, adding nearly 400,000 square feet dedicated to manufacturing 800G and 1.6T optical transceivers, with CFO and Chief Strategy Officer Stefan Murry linking the build-out to long-term growth. The company reported Q1 2026 revenue of $151.14 million, up 51% year over year, including data-center revenue rising to $81.4 million. Guidance calls for Q2 2026 revenue of $180 million to $198 million.