Applied Optoelectronics Stock Plummets 15% Thursday as Investors Rotate Out of Unprofitable Tech

Applied Optoelectronics Inc (NASDAQ: AAOI ) shares are trading sharply lower Thursday afternoon as high-beta tech winners cool off during a risk-off stretch for growth names. Here’s what investors need to know. Applied Optoelectronics stock is among today’s weakest performers. What’s weighing on AAOI shares? What Is Driving AAOI Stock Lower? The current narrative around AAOI has centered on optical interconnect demand for 500K+ GPU factories, where copper can become a bottleneck and more traffic shifts toward optics as AI data centers scale. Even with that backdrop, the stock is sliding as broader tech pressure weighs on high-beta leaders. Applied Optoelectronics is also trading in a tape where "AI exposure over profitability" has been a dominant bid, with unprofitable Russell 2000 companies up 60% since April 2025 versus 38% for profitable peers. That risk-on prefer...