Shares of fiber optic connectivity companies are trading lower as inflation fears and soaring bond yields dampen investor appetite for high-growth stocks that rely heavily on customer capex funded through borrowing. Also, Fabrinet issued Q1 GAAP EPS guidance below estimates.

GlobalFoundries And Marvell Technology Expand Multi-Year Agreement To Increase Capacity For GFS's Silicon Germanium Technology At Its Burlington, Vermont, Facility To Support Demand For Optical Connectivity

Modern AI data centers operate as distributed compute systems, where performance depends not only on accelerators, but also on the high-speed interconnects that move data between them. As AI systems scale, moving data

Shares of fiber optic connectivity companies are trading higher. Ciena announced three-year targets to 2029 of sales CAGR of approximately 30%, adjusted gross margin of approximately 50%; adjusted operating margin of 32% to 35% and free cash flow margins of approximately 20%.

8-K filing — APPLIED OPTOELECTRONICS, INC. (AAOI)

Filed: 2026-09-15 AccNo: 0001683168-26-007160 Size: 278 KB Item 1.01: Entry into a Material Definitive Agreement Item 2.03: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant Item 9.01: Financial Statements and Exhibits

Coherent Stock Declines 24% in a Month: Is This a Buying Opportunity?

Coherent Corp (COHR) has experienced a 24% monthly decline after a 155% annual surge. Despite premium valuation, the company's AI-focused portfolio, strong datacenter revenue growth (58.6% YoY), expanding margins, and capacity expansion plans support a positive long-term outlook. The stock is rated a Buy, though risks include hyperscaler spending cycles and customer concentration.

Vertiv's Product Revenue Accelerates: Can It Outpace APH & SMCI?

Vertiv (VRT) reported strong Q2 2026 results with product revenue rising 22% to $2.65B, driven by surging demand for AI data-center infrastructure. The company is expanding capacity globally and investing in advanced thermal and power solutions. However, it faces increasing competition from Super Micro Computer and Amphenol, both expanding their AI infrastructure portfolios. VRT stock has surged 47.8% year-to-date but trades at a premium valuation with a P/B ratio of 19.37X.

Corning Rides on Expanding Partner Base: Will it Boost Prospects?

Corning Incorporated has significantly expanded its AI infrastructure business through multibillion-dollar agreements with Meta, Amazon, NVIDIA, and Verizon. The company will increase U.S. optical-connectivity capacity tenfold and expand fiber production by over 50% to support AI data center expansion. However, growth remains dependent on the pace of AI infrastructure investment and customer deployment timing.