Shares of Applied Optoelectronics (AAOI) surged 5.03% during Thursday's pre-market session, significantly outperforming the broader market.
The sharp rise appears to be part of a sector-wide rally among optical communication stocks. This positive sentiment was triggered by major strategic news from industry peer Coherent (COHR). Coherent, with NVIDIA CEO Jensen Huang in attendance, held a groundbreaking ceremony for a major expansion of its indium phosphide wafer fabrication facility in Texas. The project is focused on advanced optical interconnect capacity and is backed by $50 million in U.S. CHIPS Act funding.
This development has bolstered investor confidence in the growth trajectory of the optical components sector, particularly for AI data center infrastructure. As a result, several companies within the optical ecosystem, including Applied Optoelectronics, experienced notable buying interest in pre-market trading.
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