US Stock Market Movement: Applied Optoelectronics Plunges on September 28 Due to AI Demand Concerns, Sector Weakness, and Pullback from Highs

Applied Optoelectronics September 28 Major Drop Analysis

Keywords: AI demand concerns, sector weakness, pullback from highs

1. On September 28, 2026, news that OpenAI paused training its latest model led to a downturn in the AI chip and storage sectors. AMD fell over 5% intraday, and the Nasdaq 100 Index was at one point down 1.6%. Rising oil prices and higher long-term US Treasury yields also weighed on highly valued AI infrastructure stocks, with AAOI dragged down by industry-wide losses.

2. On September 28, 2026, AAOI's year-to-date gain still reached 170.12%, with a 13.35% decline over the past five days. The company's price-to-sales ratio is about 14.4 times, significantly higher than the communications industry and peers. Profit-taking pressure has increased during the sector's pullback.

3. On August 21, 2026, the company signed an agreement to issue up to 600 million USD at market price. On September 10, 2026, the Chief Financial Officer sold 4,000 shares of stock, further adding potential supply pressure from equity dilution and insider selling.

(Disclaimer: This content is summarized from publicly available information using AI technology and is for reference only. It does not constitute investment advice.)