$Coherent Corp.(COHR.US), $POET Tech(POET.US), $Ciena(CIEN.US) all dropped around nine percentage points, $Credo Tech(CRDO.US) and $Astera Labs(ALAB.US) fell six to seven percentage points. The optical communication and AI interconnect batch collectively pulled back.

The optical communication sector has a high beta within AI data centers, rising sharply and correcting quickly. Today is a microcosm of the collective digestion of AI hardware valuations. The long-term demand for optical modules and high-speed interconnects hasn't changed, but in the short term, it's hard to stay immune amidst concerns about the pace of capital expenditures. They usually rebound first when the overall semiconductor market stabilizes.