Applied Optoelectronics (AAOI) Soars 18.9% on Million-Dollar Deal

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks Grabbing Investor Attention Today.

Applied Optoelectronics rallied for a second day on Tuesday, jumping 18.94 percent to close at $113.90 apiece, as investors resumed buying positions after securing a new million-dollar deal for its data center transceivers.

In a statement on Monday, it said that it inked a $53-million supply deal with one of its major customers for the said transceivers, with more expected to come in line with the latter’s ongoing expansion program.

Photo from Applied Optoelectronics website

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

“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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