Applied Optoelectronics (AAOI) Stock Jumps 20% as Hyperscale Orders Hit $124M in Two Weeks

TLDR

• Applied Optoelectronics surged over 20% after securing a $71 million order for 800G transceivers from a major hyperscale customer
• Total orders from that customer have now reached $124 million since mid-March
• The company also recently announced a separate $200 million order for 1.6T transceivers
• Analysts have raised price targets, with Rosenblatt maintaining a Buy rating and $140 target
• AAOI is up over 441% in the past year, with analysts forecasting 110% revenue growth in 2026

Applied Optoelectronics (AAOI) had a big Thursday, closing up more than 20% after announcing a $71 million order for 800G single-mode data center transceivers from a major hyperscale customer.

Applied Optoelectronics, Inc., AAOI

That order brings total business from the same customer to $124 million since mid-March — more than doubling the existing backlog from that account in just a few weeks.

The company expects deliveries on the initial $53 million order to begin in Q2 2026, with completion in Q3. The newer $71 million order is expected to ship through the end of the year.

CEO Dr. Thompson Lin said the order “reflects both the customer’s confidence in AOI and the growing demand for 800G optics.”

The stock wasn’t the only optical name moving. Lumentum (LITE) gained over 8%, and Coherent (COHR) climbed around 4% on the same day, as the broader optical components sector continued its run.

AAOI has now gained over 441% in the past 12 months. That includes a jump of more than 90% in February alone.

The company also recently shipped 10,000 units of an 800G transceiver to a separate hyperscale customer, adding to the picture of strong near-term demand.

Order Pipeline Builds

Beyond the 800G orders, Applied Optoelectronics announced a $200 million order for 1.6T transceivers. That deal points to demand not just at current speeds, but for the next generation of high-speed optical networking.

Multiple analysts have raised their price targets following the recent order flow. Rosenblatt reiterated its Buy rating, keeping its target at $140.

InvestingPro flagged the stock as trading above its Fair Value, placing it on its Most Overvalued list — a note worth keeping in mind given the pace of the rally.

Analysts are projecting 110% revenue growth for the company this year, with a return to profitability also expected.

Sector Tailwinds

AAOI isn’t alone in benefiting from AI infrastructure spending. Companies like Fabrinet (FN), Corning (GLW), Lumentum, and Coherent have all seen strong gains this year as data center buildouts push demand for optical interconnects.

Lumentum is up over 1,100% in the past 12 months. Coherent has climbed around 270% over the same period.

The Optical Fiber Communication Conference recently highlighted growing demand for AI-related optical solutions, giving the sector an additional boost in investor attention.

Year-to-date, AAOI stock is up roughly 147%, even before Thursday’s jump.

The company operates manufacturing and R&D facilities across Sugar Land, Texas; Atlanta, Georgia; Taipei, Taiwan; and Ningbo, China.

Q1 2026 revenue guidance from Applied Optoelectronics came in strong, which also contributed to the positive sentiment around the stock heading into Thursday’s session.

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