10 Stock Titans With Massive Losses

7. Applied Optoelectronics Inc. (NASDAQ:AAOI)

Applied Optoelectronics declined by 12.51 percent on Thursday to finish at $39.57 apiece as investors resorted to profit-taking following the previous day’s surge to a nearly eight-year high.

After hitting its highest price of $46.30 in the previous trading day, Applied Optoelectronics Inc. (NASDAQ:AAOI) has already seen its stock jump by 33 percent in January alone.

Meanwhile, the listed firm carries a “buy” recommendation from Zacks Research, reflecting its optimism for its laser transceivers, which it deems critical to the AI revolution “because they overcome the speed and bandwidth limitations of traditional copper cables, making them valuable for enabling the massive, low-latency data flow required from training and operating large AI models.”

“Additionally, with copper prices rising currently, these fiber optic cables are even more valuable,” the research firm added.

Zacks said that Applied Optoelectronics Inc. (NASDAQ:AAOI) is currently benefiting either way, from both a shift away from expensive copper and a surge in data center expansion.

Earlier, Applied Optoelectronics Inc. (NASDAQ:AAOI) unveiled a new 400-milliwatt narrow-line-width pump laser designed to meet growing demand for silicon photonics and co-packaged optics (CPO) in AI data centers.

According to the company, laser addresses situations where lasers with broader line widths or higher noise figures limit performance. It can source directly into semiconductor chip-scale systems to provide hyperscalers with a robust, high-performance light source for CPO, silicon photonics, and other applications that demand precision and power from a single, stable wavelength.