Applied Optoelectronics

Applied Optoelectronics, commenced construction on a nearly 400,000-square-foot expansion in Pearland, Texas, to support volume production of its 800G and 1.6T optical transceivers for AI datacenters.

Sector Rotation out of Crowded AI Infrastructure Trades

  • Capex Sustainability Concerns: Concerns over hyperscaler capital expenditure returns (highlighted by heavy capex outlays across big-tech AI buyers) triggered widespread profit-taking across crowded AI component trades.
  • Peer De-rating: Peers like Lumentum (LITE) and Coherent (COHR) also faced steep pullbacks as high-multiple optical names were sold off in favor of cash-generative value trades.

5/8 Update: Hold and watch the earnings release. Scheduled to release its Q2 2026 financial results on Thursday, August 6, 2026, after Market Close.

Wall Street Expectations

    • Revenue Guidance / Estimates: Management guided Q2 revenue in the range of $180.0M – $198.0M.
    • EPS Estimate: Consensus estimates project Non-GAAP EPS around -$0.03 to +$0.03 per share.

    Space X

    NAS:SPCX is set to report the Q2’26 earnings after the close on August 4 with the following consensus estimates as follows:

    • EPS loss of $0.23
    • Revenue of $6.82 billion, up from $4.7 billion in Q1

    The big story with Starlink is suddenly the xAI business might see a huge boost in revenues due to a couple of potential short-term AI contracts with Anthropic and Google. The combined deals unlock $80 billion in annual revenue for a company that only generated $18.7 billion in revenues last year.