Applied Optoelectronics (AAOI) Soars 15.7% on Booming AI

We recently published 10 Stocks Stealing Today’s Spotlight; 5 on All-Time Highs. Applied Optoelectronics, Inc. (NASDAQ:AAOI) is one of the best performers on Wednesday.

Applied Optoelectronics surged by 15.7 percent on Wednesday to finish at $32.95 apiece as investors snapped up shares in more companies that would largely benefit from the booming artificial intelligence (AI) industry.

Following a flurry of dealmaking activities over the past few weeks, Applied Optoelectronics, Inc. (NASDAQ:AAOI) appeared to have attracted investor interest amid its relatively cheaper valuation compared with its peers, alongside rosy prospects posed by the AI wave.

Applied Optoelectronics (AAOI) Soars 15.7% on Booming AI

Applied Optoelectronics, Inc. (NASDAQ:AAOI) is a leading developer and manufacturer of advanced optical products, including components, modules, and equipment vital for large cloud and hyperscale data center operators, among others, and stands to benefit from the strong demand for data centers.

In recent news, Applied Optoelectronics, Inc. (NASDAQ:AAOI) showcased its 100G VCSEL technology with the demonstration of an 800G OSFP 2xSR4 multimode optical transceiver. The new product delivers a cost-efficient, low-power optical solution designed for the next generation of short-reach multimode links.

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.

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Disclosure: None. This article is originally published at Insider Monkey.