--- title: "U.S. stock market midday update: Applied Optoelectronics down 10.26%, data center revenue doubles but AI shortage concerns remain" type: "News" locale: "en" url: "https://longbridge.com/en/news/294244643.md" description: "Applied Optoelectronics fell 10.26%; Lumentum Holdings fell 6.61%, with a transaction volume of $2.325 billion; Cisco fell 1.29%, with a transaction volume of $1.327 billion; Arista Networks fell 5.54%, with a transaction volume of $765 million; Motorola Solutions fell 0.50%, with a market capitalization of $72.7 billion" datetime: "2026-07-29T18:38:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294244643.md) - [en](https://longbridge.com/en/news/294244643.md) - [zh-HK](https://longbridge.com/zh-HK/news/294244643.md) generator: "portal-rs" --- # U.S. stock market midday update: Applied Optoelectronics down 10.26%, data center revenue doubles but AI shortage concerns remain **U.S. Stock Market Midday Update** Applied Optoelectronics fell 10.26%. Based on recent key news: 1. On July 28, Applied Optoelectronics CEO Morris Young completed a $632.5 million capital raise to expand Tongmei's InP production capacity and warned that capacity will be a key driving factor. Despite the company's data center revenue doubling year-on-year, the stock price has significantly dropped 35.7% in the past month due to market concerns over AI shortages. 2. On July 27, analysts from MarketBeat reported that Applied Optoelectronics is currently rated as a hold and is not included in the top five stocks recommended by leading analysts, which may have affected investor confidence and led to the stock price decline. 3. Recently, the entire optical communication industry has faced challenges, with other companies such as LITE, COHR, and AXTI seeing stock price declines of 22.3%, 37.6%, and 39.9% respectively, indicating overall industry weakness. Investors should be cautious given the overall weakness in the optical communication industry. **Top Stocks by Trading Volume in the Industry** Lumentum Holdings fell 6.61%. Based on recent key news: 1. On July 28, Corning's stock price plummeted after releasing its second-quarter earnings report, dragging down the stock prices of optical communication component stocks collectively. Although Corning's earnings report exceeded market expectations, the revenue guidance was below expectations, causing Lumentum and other companies' stock prices to drop over 10%. Source: MarketBeat 2. On July 28, analyst ratings showed that Lumentum was not included in the recommended list. Although Lumentum is rated as "moderate buy," top analysts are more optimistic about five other stocks, affecting market confidence. Source: MarketBeat 3. On July 27, Lumentum CEO Michael Hurlston received the 2026 Optica i4 Personal Achievement Award. Although this award enhanced the company's reputation, it failed to offset the market's negative reaction to the earnings report. Source: Business Wire The optical communication industry is significantly affected by fluctuations in AI demand. Cisco fell 1.29%, with increased trading volume. Based on recent key news: 1. On July 28, market observations reported that the net buying volume of retail investors in individual stocks has dropped to its lowest level since 2020, although total trading volume remains at historical highs. This indicates high market activity, but the trading approach has become more two-sided, affecting Cisco's stock price. 2. On July 28, Vanda Research pointed out that despite the decline in retail investor buying volume, total trading volume remains at historical highs, showing high market activity, which affects Cisco's stock price. 3. On July 28, market observations reported that Meta is facing numerous social media lawsuits, affecting market sentiment and indirectly impacting Cisco's stock price. The market activity is high, with a two-sided trading approach Arista Networks fell by 5.54%. Based on recent news, 4. On July 28, Arista Networks' stock price dropped, primarily due to market concerns about the increased R&D investment and manufacturing costs associated with its 800G network technology transformation, which could lead to a compression of gross margins. Analysts pointed out that the aggressive pricing strategy of competitor Cisco also poses a threat to Arista's profit margins. 5. On July 29, Needham analyst Ryan Koontz maintained a buy rating on Arista and raised the target price from $185 to $200. However, despite the rating upgrade, the stock price still declined, reflecting market concerns about short-term growth. 6. On July 28, a report from MarketBeat indicated that although Arista Networks currently has a buy rating among analysts, top analysts believe there are five other stocks that are more worthy of investment, which may have affected investor confidence in Arista. The overall industry is performing well, but the risks associated with technological transformation are significant. **Stocks ranked among the top in industry market capitalization** Motorola Solutions fell by 0.50%, with a market capitalization of $72.7 billion, and trading volume increased, with no significant news recently. The trading is active, and the capital flow is evident. Considering the sector and industry trends, this stock shows significant volatility, and the specific reasons need further observation ### Related Stocks - [AAOI.US](https://longbridge.com/en/quote/AAOI.US.md) - [LITE.US](https://longbridge.com/en/quote/LITE.US.md) - [CSCO.US](https://longbridge.com/en/quote/CSCO.US.md) - [ANET.US](https://longbridge.com/en/quote/ANET.US.md) - [MSI.US](https://longbridge.com/en/quote/MSI.US.md) ## Related News & Research - [Trymax secures multi-million-dollar supply agreement with AOI to support InP laser manufacturing](https://longbridge.com/en/news/297016195.md) - [Applied Optoelectronics Has a Rare Problem Thanks to a Possible U.S. Ban on China](https://longbridge.com/en/news/296953128.md) - [Security Risk Advisors Launches SCALR AI as a Free SOC AI Platform for Security Teams](https://longbridge.com/en/news/297523531.md) - [Lorka AI Report Finds Higher Workplace AI Adoption Among Younger Workers](https://longbridge.com/en/news/297049938.md) - [Former Miami Mayor Francis Suarez Joins HelloGov AI as Advisor to the Board](https://longbridge.com/en/news/297064972.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**