Applied Optoelectronics (AAOI) Soars 15.7% on Booming AI

We recently published 10 Stocks Stealing Today’s Spotlight; 5 on All-Time Highs. Applied Optoelectronics, Inc. (NASDAQ:AAOI) is one of the best performers on Wednesday.

Applied Optoelectronics surged by 15.7 percent on Wednesday to finish at $32.95 apiece as investors snapped up shares in more companies that would largely benefit from the booming artificial intelligence (AI) industry.

Following a flurry of dealmaking activities over the past few weeks, Applied Optoelectronics, Inc. (NASDAQ:AAOI) appeared to have attracted investor interest amid its relatively cheaper valuation compared with its peers, alongside rosy prospects posed by the AI wave.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) is a leading developer and manufacturer of advanced optical products, including components, modules, and equipment vital for large cloud and hyperscale data center operators, among others, and stands to benefit from the strong demand for data centers.

In recent news, Applied Optoelectronics, Inc. (NASDAQ:AAOI) showcased its 100G VCSEL technology with the demonstration of an 800G OSFP 2xSR4 multimode optical transceiver. The new product delivers a cost-efficient, low-power optical solution designed for the next generation of short-reach multimode links.

While we acknowledge the potential of AAOI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.