Applied Optoelectronics (AAOI) Soars 10% as Exec Highlights Growing Optics Technology Role

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 9 Stocks Crushing the Market With Surging Returns.

Applied Optoelectronics saw its share prices increase by 10.22 percent on Thursday to close at $202.89 apiece, buoyed by Nvidia Corp. CEO Jensen Huang’s optimistic comments about the optics industry.

At the ongoing Computex conference in Taiwan, Huang validated the importance of the optics industry in the future of artificial intelligence, saying that the right strategy “is to scale up with copper as long as you can. After that, you scale up further with optics.”

Photo from Applied Optoelectronics website

“You scale out with optics, and you scale across with optics. So you use optics wherever you must, you use copper wherever you can,” he noted.

Applied Optoelectronics Inc. (NASDAQ:AAOI) rallied alongside its counterparts, namely Marvell Technology, Credo Technology Group, Coherent Corp., and Lumentum Holdings, among others.

Further boosting sentiment was Rosenblatt’s highly optimistic outlook for the sector, saying that it expects key players to expand production capacities by approximately 12x through 2030 to support the growing demands from AI.

However, it noted that the expansion rate will remain slower than the rapid demand growth from AI.

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. (NASDAQ:AAOI).

For its part, Applied Optoelectronics Inc. (NASDAQ:AAOI) 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.

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