Applied Optoelectronics (AAOI) stock soared 9.81% during intraday trading on Wednesday, extending a powerful multi-session rebound.
The surge is fueled by a broader rally in the optical communication sector, which has been one of the hottest artificial-intelligence trades of the year. Investor sentiment across the sector has been lifted by signals of rising demand tied to the AI data-center buildout.
Despite a recent Q1 earnings miss, the company's stock has rebounded as investors focus on management's strong forward outlook. This includes robust demand for 800G modules, expectations for 1.6T product deliveries to begin as early as the third quarter, a $150 million Texas factory expansion set to complete this summer, and plans to increase laser wafer capacity by approximately 350% by the end of 2027.
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