10 Stocks Investors Are Gobbling Up

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

Applied Optoelectronics soared by 20.98 percent on Monday to finish at $33.79 apiece, tracking the overall optimism for the artificial intelligence sector, thanks to a flurry of dealmaking developments in the industry.

Applied Optoelectronics, Inc. (NASDAQ:AAOI), a leading developer of advanced optical products, including those used in modern data centers, stands to benefit from the booming AI growth as more technology giants continue to invest billions of dollars to advance the sector.

In other news, Applied Optoelectronics, Inc. (NASDAQ:AAOI) showcased its 100G VCSEL technology with the demonstration of an 800G OSFP 2xSR4 multimode optical transceiver at the recently concluded ECOC 2025 in Copenhagen, Denmark.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) said its vertically integrated design and manufacturing capabilities enable the production of 100G VCSELs at 850nm—the industry’s preferred solution for short-reach connections under 100 meters in hyperscale data centers and AI and machine-learning clusters.

“By leveraging these VCSELs in its 800G OSFP 2xSR4, AOI delivers a cost-efficient, low-power optical solution designed for the next generation of short-reach multimode links,” it said.