Shares of Applied Optoelectronics (NASDAQ:AAOI) are up 20% in midday trading to around $190, snapping back hard from a Friday close of $158.41. The single-session pop lifts the stock’s year-to-date (YTD) 2026 gain to an impressive 439%.
Meanwhile, Lumentum (NASDAQ:LITE | LITE Price Prediction) stock is up 7% to $914 and Coherent (NYSE:COHR) stock is roughly flat near $363. All three optics names are riding the AI datacenter infrastructure wave, yet AAOI stock has been the clear runaway in 2026.
Today’s tailwind is NVIDIA‘s (NASDAQ:NVDA) Computex 2026, which reinforces the picks-and-shovels case for high-speed transceivers. The group is also rebounding from a rough prior week, when AAOI stock fell 13% and LITE stock dropped 10%.
AAOI Leads YTD, but Size Cuts Both Ways
Applied Optoelectronics is the YTD champion at +439%, but its market cap near $15.1B gives AAOI stock more torque in both directions than its larger peers. Last week’s selloff and today’s snapback show how quickly that volatility can cut in both directions.
The fundamental story remains the 800G ramp. Applied Optoelectronics reported Q1 2026 revenue of $151.14 million, up 51% YoY, with datacenter revenue more than doubling to $81.4 million. CEO Thompson Lin stated that the company “completed our first volume shipment of our 800G products to one of our large hyperscale customers in Q1.”
The honest caveat: insider selling has been heavy. On May 19, multiple Applied Optoelectronics executives, including the CEO and CFO, sold large blocks at $173.26 and $190.36. That’s profit-taking during a historic rally, and it’s a potential signal that’s worth noting.
Lumentum’s 1-Year Wrinkle
Here’s the comparison nuance. Lumentum stock has actually outperformed AAOI on a one-year basis, with LITE stock up 1,155% versus AAOI stock’s 1,118%. In other words, the YTD lens isn’t the only one investors should use.
Lumentum’s fiscal Q2 2026 revenue hit $665.5 million, up 66% YoY, with non-GAAP operating margin expanding 1,730 basis points. CEO Michael Hurlston flagged optical circuit switch backlog above $400 million and a multi-hundred-million-dollar co-packaged optics order deliverable in first-half calendar 2027.
However, some Lumentum insiders have been selling. Hurlston disposed of 5,438 shares on May 15 at $970.70, part of a broader executive-selling cluster across mid-May.
Coherent’s Steadier Climb
Coherent is the steadiest of the three. Q3 FY2026 revenue hit $1.81 billion (+21% YoY), with datacenter and communications now 75% of the revenue mix. Coherent stock is roughly flat today after a strong run that included joining the S&P 500.
CEO Jim Anderson highlighted the deepening NVIDIA partnership and NVIDIA’s $2 billion investment in Coherent. Anderson asserted, “As AI datacenter infrastructure continues to scale, we are rapidly expanding capacity to meet demand.” COHR’s +94% YTD ranks third in this group but reflects a larger, more diversified base.
What to Watch
The broader optics thesis is straightforward. Hyperscaler capex from Meta Platforms (NASDAQ:META) and other mega-caps is fueling demand for 400G, 800G, and 1.6T transceivers, and these three names are direct beneficiaries.
The risks are real, however. All three optics stocks trade as extended winners with premium valuations after extraordinary runs, and Applied Optoelectronics carries more execution risk and lumpier revenue than its peers. Furthermore, insider selling across all three names during the rally is a flag prudent investors should weigh.
Watch for whether AAOI stock holds today’s gains into the close, and check the next round of hyperscaler capex commentary for any shift in the demand picture. The 800G and 1.6T transceiver ramp updates from Applied Optoelectronics, Lumentum, and Coherent could shape the next leg of this trade.
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