AI Optical Communication Stocks Plummet… Market Cap Shrinks by 640 Billion in a Day

Applied Optoelectronics Inc. (NASDAQ: AAOI), a U.S. optical communications component maker, closed at $86.60 on March 17, down 7.94% on the Nasdaq. Its market capitalization stands at about $6.5 billion (approximately KRW 8.8 trillion), wiping out over $479 million (KRW 640 billion) in value in a single day. Trading volume topped 11.87 million shares, reflecting an unusually intense sell‐off.

Recently, the company amended its existing share‐sale agreement, filing an equity distribution arrangement that allows it to offer up to $500 million of additional common shares to the market, underscoring potential pressure from a large future share supply. Moreover, fueled by expectations of increased AI data‐center investments, its stock has surged from around $10 just months ago to the $80 range, resulting in extreme volatility.

Applied Optoelectronics, based in Sugar Land, Texas, designs and manufactures optical‐network semiconductors—such as transceivers and lasers for data centers, cable TV, telecommunications, and FTTH—and is poised to benefit directly from the expansion of AI data‐center infrastructure. With major global cloud providers and telecom operators among its clients, its earnings and share price are highly sensitive to shifts in industry conditions and capital‐expenditure cycles.