Google’s cash burn drags down AI optics suppliers by 10-15%
Google’s $9.1 billion quarterly cash burn—double analyst expectations—sent shockwaves through AI optics suppliers this week. Applied Optoelectronics, Coherent, Lumentum, and Marvell all saw their stocks tumble 10% to 15%, reflecting investor concerns about hyperscaler spending cuts. These firms supply lasers, transceivers, and optical chips critical to AI data centers, with hyperscalers like…
Key points
- Google’s $9.1B cash burn—double expectations—triggered 10-15% drops in AI optics stocks (Applied Optoelectronics, Coherent, Lumentum, Marvell)
- Hyperscalers like Google account for 99% of Applied Optoelectronics’ Q2 revenue, per company’s own data
- Lumentum’s optical components sold out through early 2029; Applied Optoelectronics faces production constraints until mid-2027
The selloff also highlights overlapping risks: Coherent’s CEO dismissed demand slowdowns, while Marvell’s potential $350 million acquisition of Lumentum—reported by Bloomberg—adds uncertainty. Marvell, a custom AI chip supplier to Google, faces dual pressures: hyperscaler spending fears and its own stock volatility (up 133% YTD). Analysts warn that any further pullback by Google or peers could disproportionately hurt these concentrated suppliers, whose stocks swing more sharply than those of the hyperscalers themselves.
Applied Optoelectronics Plunges 15%, Coherent Tumbles 13% as Hyperscaler Spending Fears Hit AI Optics Stocks; Lumentum and Marvell Sink 10%
247wallst.com · 30 October 2026
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