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Applied Optoelectronics (AAOI) Climbs 20% on Higher 800G Transceiver Demand

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks With Easy 8-20% Gains.

Applied Optoelectronics saw its share prices increase by 20.34 percent on Thursday to close at $103.91 apiece, after announcing an increased demand for its 800G data center transceivers.

In an updated report, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that its major hyperscale customer upsized to $124 million its order for 800G single-mode data center transceivers, more than doubling its existing backlog for the latter.

“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, we expect to begin delivering both the initial order—totaling more than $53 million—and this additional order in the second quarter. We anticipate completing delivery of the initial order in the third quarter, with this new order by the end of this year. We also recently shipped the first 10,000 units of an 800G single-mode transceiver order to another hyperscale datacenter customer,” he 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.

While we acknowledge the risk and potential of AAOI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAOI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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