10 Stocks Gaining Double Digits Effortlessly

Page 9 of 9

1. Applied Optoelectronics Inc. (NASDAQ:AAOI)

Applied Optoelectronics soared to a nearly eight-year high on Wednesday, as investors took heart from positive coverage from an investment firm with a “buy” recommendation for its stock.

At intra-day trading, the stock climbed to its highest price of $46.30 before trimming gains to end the day just up by 20.97 percent at $45.23 apiece.

In its market report, Zacks Research posted optimism for Applied Optoelectronics Inc.’s (NASDAQ:AAOI) laser transceivers, deeming them critical to the AI revolution “because they overcome the speed and bandwidth limitations of traditional copper cables, making them valuable for enabling the massive, low-latency data flow required from training and operating large AI models.”

“Additionally, with copper prices rising currently, these fiber optic cables are even more valuable,” the research firm added.

Zacks said that Applied Optoelectronics Inc. (NASDAQ:AAOI) is currently benefiting either way, from both a shift away from expensive copper and a surge in data center expansion.

In other news, Applied Optoelectronics Inc. (NASDAQ:AAOI) earlier unveiled a new 400-milliwatt narrow-line-width pump laser, a new product designed to meet growing demand for silicon photonics and co-packaged optics (CPO) in AI data centers.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) said that the laser addresses situations where lasers with broader line widths or higher noise figures limit performance. It can source directly into semiconductor chip-scale systems to provide hyperscalers with a robust, high-performance light source for CPO, silicon photonics, and other applications that demand precision and power from a single, stable wavelength.

While we acknowledge the potential of AAOI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAOI and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge fund investor letters by entering your email below.

Page 9 of 9