Tech hardware stocks lag as AI return worries weigh

Ciena

16/10/2026 17:28

** Tech hardware firms in S&P 500 .SPX index are among the worst-performing stocks this week
** S&P 1500 Tech Hardware & Equipment index .SPCOMTEHW down 3.3% this week, compared with 1.2% fall in S&P 500 .SPX
** AI infrastructure stocks have weakened this week amid concerns that debt-laden data center operators may take longer than expected to generate returns on AI investments
** Leading weekly declines are networking equipment makers Lumentum Holdings LITE.O and Ciena CIEN.N, down 2.5% and 3.2%, respectively, on Friday, after losing nearly quarter of their value up to Thursday's close
** Despite this week's losses, LITE shares have more than doubled so far this year
** Optical components makers Applied Optoelectronics AAOI.O down 3.3%, while Fabrinet FN.N falls 2.1%
** Server maker Hewlett Packard Enterprise HPE.N, optical component maker Coherent COHR.N, electronics manufacturer Flex FLEX.O and AI server maker Super Micro Computer SMCI.O down between 3.6% and 4.4%

 (Reporting by Darshan Kumar in Bengaluru)
 ((darshan.kumar@thomsonreuters.com))