Shares of fiber optic connectivity companies are trading lower after reports suggesting that OpenAI's annualized revenue is approximately $20 billion less than previously indicated, which may weaken demand sentiment in sectors dedicated to compute buildout.

Why Applied Optoelectronics Stock Plummeted This Week

Applied Optoelectronics stock fell 23.6% this week after Broadcom CEO warned of capital constraints that could slow AI infrastructure spending. The optical component maker, which relies heavily on data center customers for 800G transceivers, faces headwinds from funding concerns among major cloud providers. The stock has declined 64.2% from its 52-week high, compounded by recent shareholder dilution from a $600 million equity offering.

Applied Optoelectronics shares are trading lower after B. Riley Securities lowered its price target on the stock from $109 to $92.

B. Riley Securities Maintains Neutral on Applied Optoelectronics, Lowers Price Target to $92

Shares of fiber-optic connectivity companies are trading lower as elevated Treasury yields and increased Fed rate-hike expectations following the latest inflation data weigh on technology stocks. Higher borrowing costs could pressure AI infrastructure spending plans, raising concerns about future demand for fiber-optic equipment and connectivity solutions.

Nasdaq 100 Drops, SanDisk Tumbles 6% as AI Trade Falters: Stock Market Today

An AI-infrastructure selloff hits the Nasdaq 100 and small caps while the Dow edges up and oil rebounds as Trump's energy ceasefire claim unravels.

Ciena shares are trading higher amid possible sympathy with Marvell Technology. Nokia CEO Justin Hotard said AI data center demand remains strong and AI customers would build centers twice as fast if possible, reflecting confidence in the communications equipment industry.