Applied Optoelectronics stock fell 3.6% in morning trading Thursday, as a selloff across the optical communications sector extended into a second session.

The fiber-optics company declined more than 6% in the prior session alongside peers including Coherent, Credo Technology, Lumentum, Nokia, and Corning. Analysts linked the sector-wide decline to reduced sentiment around the pace of AI-driven optical infrastructure deployments and concerns over near-term order digestion at major cloud providers.

The stock faces additional pressure from the company's recently completed $600 million at-the-market equity offering, which closed on October 5. The program, originally filed with the SEC in August, raised approximately $588 million net. The offering provides Applied Optoelectronics with capital to fund its U.S. manufacturing expansion, but the share issuance has weighed on the stock since completion.

A Form 4 filing disclosed that SVP and Asia General Manager Shu-Hua Yeh sold 6,000 shares for approximately $720,180 on October 5 under a pre-arranged Rule 10b5-1 trading plan.