10 Best Fiber Optics Stocks to Buy for the AI Data Center Boom

8. Applied Optoelectronics, Inc. (NASDAQ:AAOI)

Number of Hedge Fund Holders: 55

Applied Optoelectronics, Inc. (NASDAQ:AAOI) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On May 12, 2026, the company said it was working with Mediacom to accelerate DOCSIS 4.0 network upgrades and the expansion of fiber and coax infrastructure across the cable operator’s footprint. The project is not an AI data center order, but it highlights Applied Optoelectronics’ role in advanced optical and hybrid fiber-coax networking hardware, which sits close to the same bandwidth problem driving AI infrastructure spending.

Mediacom plans to upgrade its network to serve about 1 million homes by the end of 2026 using distributed access architecture, DOCSIS 4.0, fiber expansion, and whole-home Wi-Fi technology. Applied Optoelectronics is the primary vendor for Mediacom’s upgrades across legacy amplifier holdings, supplying 1.8GHz smart amplifiers and related software meant to increase capacity, improve signal quality, and lower operating costs.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) develops and manufactures advanced optical and HFC networking products for AI data centers, CATV broadband, telecom, and fiber-to-the-home markets. Its portfolio includes optical transceivers, lasers, amplifiers, broadband access products, and related components.

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