$Applied Optoelectronics(AAOI)$ On AOI, the key point is capacity versus demand. Demand is not the limiting factor here. Production capacity and component availability are the constraints. Management says forecast demand for 800G and 1.6T exceeds production capacity through mid-2027. CEO Thompson Lin stated that customer demand is roughly 20-40% higher than the capacity AOI is currently building. That suggests the 650K/month target may not fully satisfy demand.
On the Texas manufacturing expansion, AOI now has over 1.6 million square feet of manufacturing-related real estate in the Houston area. A new 210,000 square foot facility is expected to begin initial production in late Q3 2026. The new facility is dedicated to 800G and 1.6T transceivers. Additional Pearland and Houston facilities are expected to come online in early 2027.
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