AAOI & LITE Both Skyrocket 15% on Monday

Core Insights - Applied Optoelectronics (AAOI) and Lumentum (LITE) both experienced a significant surge of approximately 15% in stock price on Monday, with AAOI reaching $110.62 and LITE at $640.69, following a sell-off in the optics sector the previous week [1] Group 1: Applied Optoelectronics (AAOI) - AAOI secured a major contract worth over $200 million for 1.6T data center transceivers from a major hyperscale customer, marking its first volume order at this speed tier [1] - The company reported Q4 2025 revenue of $134.27 million, reflecting a year-over-year increase of 33.9%, and provided Q1 2026 revenue guidance of $150 million to $165 million [1] - Management projected that full-year 2026 revenue could exceed $1 billion, with monthly orders of transceivers expected to reach $378 million by mid-2027 [1] Group 2: Lumentum (LITE) - LITE's stock price increase was driven by its recent addition to the S&P 500, which triggered mechanical buying from index funds [1] - The company reported Q2 FY2026 revenue of $665.5 million, a year-over-year increase of 65.5%, with a non-GAAP operating margin of 25.2% [1] - LITE's Q3 FY2026 revenue guidance of $780 million to $830 million suggests an anticipated growth of over 85% year-over-year [1]