Applied Optoelectronics, Inc.

Mata Health is obviously a health company, more like digital health rather than drugs.

And Applied Optoelectronics is basically the only semiconductor that is in there.

But we should have the same next time we do this, which will be the end of September.

I might pause there.

You'll notice a few healthcare companies, so Billion to One, which is diagnostics, Amata Health, which is kind of like health tech.

And obviously, we have a pretty significant weighting into companies like Coherent, Applied Optoelectronics, Bloom Energy, which are basically on that... optical slash data center slash semiconductor trade.

And there's a number of more that didn't make it into the top 10.

So typically what we're doing is we're investing in these companies at two to two and a half percent positions of initiation.

And I think that's going to be in the optics and the memory sectors.

I think Optics, when you look at Coherent, when you look at ticker COHR, look at Lumentum, ticker LITE, Credo, CRDO, Fabernet, FN, Applied Optoelectronics, AOI.

We are shifting in the AI infrastructure build out from training to inferencing.

When you're in inferencing mode, it's all about connecting these GPU clusters so that they work in unison, they work in tandem, they work together.

Um, a second element is that, um, if we look back in the last, uh, couple of quarters, it is true that a, a, a number of other semiconductor companies which hadn't risen, uh, that strong previously, uh, and that are also experiencing the same bottlenecks triggered by the, uh, rollout of AI, uh, well, uh, they drew a bit more attention.

Uh, let's look at the, the, the memory players, but also, uh, companies in the photonica complex, companies like Lumentum, Coherent, Applied Optoelectronics.

Right.

All those players, they, uh, basically, um, are, are riding the same wave and had-

Um, a second element is that, um, if we look back in the last, uh, couple of quarters, it is true that a, a, a number of other semiconductor companies which hadn't risen, uh, that strong previously, uh, and that are also experiencing the same bottlenecks triggered by the, uh, rollout of AI, uh, well, uh, they drew a bit more attention.

Uh, let's look at the, the, the memory players, but also, uh, companies in the photonica complex, companies like Lumentum, Coherent, Applied Optoelectronics.

Right.

All those players, they, uh, basically, um, are, are riding the same wave and had-

Gold climbed 1.86% to $4,710 an ounce, while silver fell .87% to $68.86 an ounce.

Oil dropped 2.32%, and the big stock move today is Applied Optoelectronics.

Shares sank nearly 14% after the optical networking company unveiled a new $600 million at-the-market stock offering late Friday.

[whooshing] In sports, the Cleveland Browns have named Deshaun Watson their starting quarterback over Shedeur Sanders to begin the 2026 NFL season.

All right, last stock.

Last stock is Applied Optoelectronics, ticker AAOI.

Shares are tumbling as much as 18% today, and they're on pace to have their worst day since early July.

And this is coming after late Friday, the company dropped news that it had entered into a deal to issue and sell up to $600 million worth of shares of its common stock.

Um, however, the stock price itself has actually more than tripled this year to date, and analysts are quite bullish on the company.

The average price target is $128 roughly, which represents about a 17% increase from its current trading price.

So, um, again, really interesting to watch those forces at work for Applied Optoelectronics.

[Instrumental music] The Stock Movers Report from Bloomberg Radio.