5 Stocks Powering Portfolios by Double Digits

2. Applied Optoelectronics Inc. (NASDAQ:AAOI)

Applied Optoelectronics climbed by 44.9 percent week-on-week, with the rally primarily lifted by the overall optimism, thanks to the easing tensions between the US and Iran, while still favoring technology stocks riding the AI boom.

Further boosting sentiment for the company was news earlier that it saw a strengthening demand for its new 800G data center transceivers after one of its major hyperscale customers upsized its order to $124 million from $53 million previously.

“This increased order for our 800G transceivers reflects both the customer’s confidence in AOI and the growing demand for 800G optics,” Applied Optoelectronics Inc. (NASDAQ:AAOI) Chairman and CEO Dr. Thompson Lin said.

Following product qualification, Applied Optoelectronics Inc. (NASDAQ:AAOI) expects to start the delivery of both the initial and upsized orders in the second quarter of the year, with completion targeted by the end of 2026.

“We also recently shipped the first 10,000 units of an 800G single-mode transceiver order to another hyperscale datacenter customer,” Lin noted.

Launched in September last year, the 800G optical transceivers are built for high-performance AI and cloud data center networks requiring superior port density and bandwidth efficiency. It is available in standard pluggable form factors and is essential for high-capacity spine switching and high-speed GPU cluster interconnects.