Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks Entering June on Fire.
Applied Optoelectronics snapped a two-day losing streak on Monday, surging 17.21 percent to close at $185.67 apiece, as investors digested an investment firm’s optimism for huge growth potential for optical stocks amid the rapidly growing artificial intelligence sector.
In a market note on Friday, Rosenblatt said that it expects optical component manufacturers to expand production capacities by approximately 12x through 2030, albeit at a slower pace than the rapid demand growth from AI.
Photo from Applied Optoelectronics website
Rosenblatt noted that last year alone, the supply of indium phosphide-based Datacom components lagged by 50 percent. However, this gives room for huge growth and expansion opportunities for key players such as Applied Optoelectronics Inc..
For its part, Applied Optoelectronics Inc. is underway with the expansion of its new manufacturing facility in SugarLand, Texas, as it aims to support the growing needs of its customers.
The company initially programmed $150 million in capital expenditures for the site development, and later doubled it to $300 million by the end of 2027.
The new facility will sit on a 210,000-square-foot manufacturing warehouse and is set to strengthen domestic manufacturing, scale advanced optical transceiver production, and reinforce SugarLand as a growing hub for AI innovation.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
