Applied Optoelectronics, POET Technologies, Lumentum Holdings, Coherent, and Marvell Technology rebounded in overnight trading heading into Wednesday, with gains ranging from 1.3% to 3.3%. The recovery followed steep declines in Tuesday's regular session, where the same stocks dropped between 7.2% and 10.8%. The overnight rebound tracked broader chip sector recovery after a cooling-off period following the early-week rally sparked by the U.S.-Iran peace deal, with investors shifting attention to the Federal Reserve's interest-rate decision due on Wednesday.
Photonics Stocks Declined Sharply in Tuesday Regular Session
In the regular session on Tuesday, Applied Optoelectronics declined 10.8%, POET dropped 9.2%, Lumentum dropped 8.5%, and Coherent dropped 7.2%. Shares of Marvell, which bolstered its photonics capabilities through the acquisition of Celestial AI, fell 9.8%. The selloff tracked broader weakness across semiconductor stocks, with Intel and Advanced Micro Devices also declining, dragging the iShares Semiconductor ETF down 6% for its second-steepest drop since October.
Nvidia CEO Endorsed Photonics Companies at Computex Conference
At the Computex conference in Taipei, Taiwan, earlier this month, Nvidia CEO Jensen Huang highlighted photonic technology and companies such as Coherent, Lumentum, and Corning at various points in his presentations, triggering a rally in their stocks the next day. Nvidia has previously invested in all three companies as part of broader strategic and commercial partnerships. Huang also endorsed Marvell as the "next trillion-dollar company." Photonics stocks are seeing massive demand and valuation gains as hyperscalers increase spending on optical transceivers, switches, and fiber-optic cabling to address speed bottlenecks in AI data centers.
Stocktwits Sentiment for AAOI Shifted to Bullish
The retail sentiment for Applied Optoelectronics jumped to 'bullish' from 'neutral' amid high message volume. The sentiment remained 'bearish' for POET and Coherent, and 'extremely bearish' for Lumentum. A trader wrote on Stocktwits: "AAOI exited Q1 at roughly 100,000 transceivers a month and guided to over 930,000 a month of 800G and 1.6T by the end of 2027, more than half of it from Texas, while expanding laser fabrication capacity by about 350% over the same window." Another trader noted: "10% down or up in a day is now normal business. Stock going down 10% in a day used to be a huge deal just few years ago."
Year-to-Date Performance Shows Triple-Digit Gains
Year-to-date, Applied Optoelectronics is up 390%. Lumentum is up 138%, Coherent is up 107%, and POET is up 100%. Marvell stock rallied sharply after Huang's endorsement and is up 228% in 2026.
FAQ
What caused photonics stocks to rebound in overnight trading?
Photonics stocks including Applied Optoelectronics, POET Technologies, Lumentum Holdings, Coherent, and Marvell Technology rebounded in overnight trading heading into Wednesday, recovering alongside the broader chip sector after steep declines in Tuesday's regular session. The overnight gains ranged from 1.3% to 3.3%.
Why did photonics stocks decline in Tuesday's regular session?
In Tuesday's regular session, photonics stocks declined sharply, with Applied Optoelectronics down 10.8%, POET down 9.2%, Lumentum down 8.5%, Coherent down 7.2%, and Marvell down 9.8%. The selloff tracked broader weakness across semiconductor stocks, with the iShares Semiconductor ETF down 6% for its second-steepest drop since October, as investors shifted attention to the Federal Reserve's interest-rate decision due on Wednesday.
What did Nvidia CEO say about photonics companies at Computex?
At the Computex conference in Taipei, Taiwan, earlier this month, Nvidia CEO Jensen Huang highlighted photonic technology and companies such as Coherent, Lumentum, and Corning at various points in his presentations, triggering a rally in their stocks the next day. Huang also endorsed Marvell as the "next trillion-dollar company."
