Applied Optoelectronics (AAOI) Recovers 9.4% on New Million-Dollar Supply Deal

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks to Watch Today.

Applied Optoelectronics bounced back by 9.39 percent on Monday to end at $95.76 apiece, as investors took heart from a new $53 million deal with one of its major customers for the supply of 800G single-mode data center transceivers for its AI workloads.

In a statement on the same day, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that the amount marks the initial volume order from the said company, with more expected to come in line with its ongoing expansion program.

Shipments are expected to start in the second quarter of the year, with completion in the middle of the third quarter.

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“AI infrastructure expansion is accelerating, and requires significantly higher bandwidth at scale,” Applied Optoelectronics Inc. (NASDAQ:AAOI) Chairman and CEO Thompson Lin said.

“Our customers are adopting 800G not just for capacity and performance, but to manage long-term operating costs. Deploying 800G now helps to prevent network bottlenecks, improves power efficiency and lowers cost per bit, reducing the need for frequent upgrades,” 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.

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