Overview
- Shares jumped more than 20% as investors reacted to 51% year‑over‑year Q1 revenue growth driven by 800G optics used to link AI servers.
- Management guided Q2 revenue to $180 million to $198 million and said growth should step up in Q3 as new Houston production lines start running.
- The company booked a new $71 million 800G order from a major cloud customer, lifting that buyer’s total to $124 million since mid‑March, and it shipped first volume 800G units to another hyperscaler.
- Texas awarded a $20.9 million grant for a new Sugar Land plant expected to add over 500 jobs, while a Pearland expansion targets output that could reach up to 700,000 high‑speed modules per month and a roughly 350% laser‑fab increase by 2027.
- Rosenblatt raised its price target to $220 and kept a Buy rating, highlighting AAOI’s upbeat outlook and early 1.6T order for second‑half 2026 deliveries.