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Applied Optoelectronics Sets Record High on ~$200 Million 1.6T Transceiver Deal and Factory Buildout

Deliveries are slated for the third quarter through year-end to a long-term customer supporting AI workloads.

Overview

  • Shares hit an intraday all-time high of $127.39 on Tuesday and closed up 8.92% at $120.49.
  • The company disclosed a roughly $200 million order for 1.6T data center transceivers, with shipments starting in Q3 and finishing by year-end.
  • Manufacturing expansion is underway in Taiwan alongside a new production site in Sugar Land, Texas to scale output.
  • AAOI targets capacity of more than 500,000 combined 800G and 1.6T transceivers per month by year-end, according to CEO Thompson Lin.
  • Rosenblatt raised its price target to $140 and reaffirmed a buy rating, following recent results that included Q4 revenue of $134.3 million and Q1 guidance of $150–$165 million.