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Optical Stocks Slide: MaxLinear Down 12% on Profit-Taking

24/7 Wall St.2 min read5 sources

Why are optical stocks down today?

Optical networking stocks fell on Thursday, with MaxLinear (MXL) down 12.7% to $93.70 and Coherent (COHR), Lumentum (LITE) and Applied Optoelectronics (AAOI) lower, as investors took profits after huge 2026 gains.

Key numbers

MaxLinear (MXL)$93.70-12.7% close; -7.1% midday [4]
Applied Optoelectronics (AAOI)$111.76-9% midday (per [1])
Coherent (COHR)$316.40-5% midday (per [1])
Lumentum (LITE)$1,068.50-4% midday (per [1])
Corning (GLW)-3.4%1-day move
Applied Optoelectronics 2026 gain+221%year to date (per [1])

What happened

Optical networking stocks fell on Thursday, with MaxLinear (MXL) down 12.7% to $93.70 and Coherent (COHR), Lumentum (LITE) and Applied Optoelectronics (AAOI) lower, as investors took profits after huge 2026 gains. Corning (GLW) also slid 3.4%, partly over a plan that lets it sell up to $2.0 billion of new shares. Applied Optoelectronics is up 221% this year and Lumentum 190%, so some owners cashed in. None of the three had disclosed anything that changes the demand picture. MaxLinear reports earnings on October 22.

Why it matters

Optical networking stocks matter because these companies make the lasers and glass fiber that move data inside AI data centers. After shares of Applied Optoelectronics and Lumentum rose roughly 190% to 220% this year, even small worries can set off fast drops as owners sell to lock in gains (profit-taking). Sharp swings like this show how closely investors are watching AI spending.

Who this affects

Marketbearish
Low impact
AI-linked investors face sharper swings after a huge 2026 run.
Companybearish
High impact
MaxLinear shareholders lost 12.7% in one day, a bad outcome.
Competitorsbearish
Medium impact
Coherent, Lumentum, Applied Optoelectronics and Corning also lost ground.
Industrybearish
Medium impact
Suppliers to AI data centers face tougher investor scrutiny.

MaxLinear vs Coherent, Lumentum, Applied Optoelectronics, Corning

MaxLinearMXL$93.70-12.7%—
CoherentCOHR$316.40-5%—
LumentumLITE$1,068.50-4%+190%
Applied OptoelectronicsAAOI$111.76-9%+221%
CorningGLW—-3.4%—

As of 2026-10-08

How we got here

  1. Coherent jumped 10% and Lumentum 9% on a new product push and Bernstein coverage.

  2. Optical stocks fell together; MaxLinear closed down 12.7% after a 45% one-month surge.

  3. Corning dropped 3.4% on dilution concerns and sector profit-taking.

What to watch

  • MaxLinear reports third-quarter earnings, its next test after the sharp drop.2026-10-22
  • Whether Corning uses its $2.0 billion share-sale agreement, which could dilute existing owners.Q4 2026

Educational content only. Not investment advice.

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