Applied Optoelectronics is trading at $104.41 (-4.29%) in pre-market following a sharp two-day reversal from its July 14 high, driven by profit-taking and a broader downturn in AI hardware stocks.
- The decline follows recent reports of insider selling and valuation pressure as investors rotate out of high-growth, unprofitable technology names.
- Broader sector weakness is weighing on the stock, with the semiconductor index (SOXX) down 2.52% pre-market as investors lock in gains across the AI hardware space.