Optical Communication and Storage sector continues to decline in night trading; Lumentum, Corning, SanDisk, and Micron each drop about 2%. WeRide surges over 3% after Uber increases its stake to 5.82% and launches a $100 million buyback.

Night Session Performance

According to the Gold Pattern APP report, the US stock night session saw the optical communication and storage concept sectors continue to decline. Lumentum, Corning, SanDisk, and Micron all fell by about 2%, reflecting the market’s short-term concerns regarding the elasticity of supply chain and demand related to AI infrastructure.

Meanwhile, autonomous driving concept stock WeRide (WRD) rose over 3% against the trend, mainly benefiting from Uber increasing its shareholding to 5.82%, as well as positive news of the company announcing a $100 million stock repurchase program.

Optical Communication Sector

There was a clear adjustment in optical communication sector stocks during the night session. Lumentum (LITE), a major supplier of high-speed optical modules and lasers for AI data centers, has benefited in the long run from AI infrastructure expansion, but in the short term faces pressure from supply chain tightening and valuation corrections. Corning (GLW), a core manufacturer of optical fiber and cables, has seen strong growth in its enterprise data center business, but nonetheless weakened with the sector in the night session.

This round of adjustment is related to previous market re-pricing logic triggered by efficiency-improving technologies such as Google TurboQuant, with investors concerned that AI demand for high-end optical interconnect may temporarily slow down. Despite companies like Lumentum having announced multiple AI-related large orders and capacity expansion plans, short-term capital sentiment remains cautious.

Storage Concepts

The storage concept sector is also under pressure. SanDisk (SNDK) fell approximately 2% in the night session, with Micron (MU) also moving lower. The storage sector had already faced adjustment due to memory demand reassessment, and news that Google TurboQuant technology can compress AI inference memory usage further intensified the market’s reassessment of the high-end storage scarcity narrative such as HBM.

Although long-term AI computing power expansion will continue to drive growth in memory and storage demand, investors in the short term are turning to verify actual capital expenditure cadence and technological implementation, leading to corrections in related stocks. As important manufacturers of NAND and DRAM, the price fluctuations of SanDisk and Micron also reflect the overall sector’s transition from high growth pursuit to differentiated verification.

WeRide Developments

WeRide (WRD) performed outstandingly in the night session, with its stock price rising more than 3%. Uber confirmed it increased its stake in WeRide to 5.82%, and this passive shareholding increase strengthens the strategic cooperation between the two companies in the Robotaxi field.

In addition, WeRide announced the launch of a $100 million stock repurchase program, demonstrating management’s strong confidence in the company’s long-term value. The company had previously obtained shareholder meeting authorization for the buyback plan, and this announcement further boosted market sentiment. As a global leader in autonomous driving technology, WeRide’s L4-level Robotaxi solutions are accelerating commercial implementation.

Multi-dimensional Comparison

The table below compares the main driving factors behind the night session adjustment of the optical communication and storage sector and the counter-trend rise of WeRide:

Latest market data shows that optical communication and storage concept stocks have seen divergent adjustments under the influence of recent AI-related tech news, while WeRide has countered the trend with specific positive catalysts, highlighting differentiated movements among stocks within the sector.

Editor’s Summary

The continued decline in the optical communication and storage concepts during the night session reflects a short-term reevaluation of the elasticity of AI hardware demand in the market, while WeRide’s stake increase by Uber and the commencement of a buyback program demonstrate an independent growth logic in the autonomous driving field. The adjustments of Lumentum, Corning, SanDisk, and Micron do not negate the long-term trend of AI but remind investors to pay attention to interim impacts brought by supply constraints and efficiency technologies. On the whole, the AI industry chain is entering a stage of differentiated verification, and companies with clear strategic cooperation or capital management initiatives are more likely to attract capital.

Frequently Asked Questions

1. Why did optical communication and storage concepts continue to fall in the night session?
In the night session, Lumentum, Corning, SanDisk, and Micron all fell about 2%, mainly due to market concerns about the elasticity of demand for optical interconnects and memory in AI infrastructure. The release of Google TurboQuant previously triggered a revaluation of the memory scarcity narrative, with investors shifting from chasing gains to verifying actual demand cadence, resulting in short-term pressure on these concept sectors.

2. Why did leading optical communication players like Lumentum and Corning adjust?
Lumentum is a key supplier of high-speed optical modules for AI data centers, while Corning leads in the fiber optic cable business. Although both have benefited from AI computing power expansion in the long term, they currently face supply chain tightness, valuation correction, and concerns about demand elasticity brought by efficiency optimization technologies. The approximate 2% drop in the night session is part of a broader sentiment adjustment in the sector.

3. What trend does the decline of SanDisk and Micron reflect for the storage sector?
As key players in the storage field, SanDisk (SNDK) and Micron (MU)’s decline in the night session reflects a phase correction in demand for high-end storage such as HBM and DRAM. Technologies like TurboQuant may reduce memory usage in certain inference scenarios, prompting capital to reassess the previous hardware stacking logic, resulting in increased short-term sector volatility.

4. Why did WeRide rise against the trend?
WeRide (WRD) rose more than 3% in the night session, mainly driven by Uber raising its stake to 5.82%, strengthening its strategic cooperation with WeRide in Robotaxi, as well as the company announcing a $100 million buyback program, which demonstrates management’s confidence. This positive combination stands out amid sector differentiation.

5. How should investors view the current differentiation of the AI industry chain?
The correction in optical communication and storage concepts does not negate the long-term demand for AI, but reflects the combined effects of supply bottlenecks, efficiency technology progress, and capital expenditure cadence. The WeRide case shows that companies with clear partner stake increases or buyback actions are more resilient. Investors should distinguish between short-term sentiment fluctuations and actual implementation progress, keep an eye on supply chain dynamics (such as TSMC) and order validation for each company, and adopt differentiated allocation strategies to balance risks and opportunities.