Applied Optoelectronics (AAOI) Hits All-Time High on New Supply Deal, Expansion

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks Investors Are Watching.

Applied Optoelectronics climbed to a new all-time high on Tuesday, as investor sentiment was fueled by its newly-bagged $200 million supply deal, ongoing expansion plans, and a higher price target from an investment firm.

In intra-day trading, the stock soared to its highest price of $127.39 before trimming gains to finish the session just up by 8.92 percent at $120.49 apiece.

In an updated report, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that it recently sealed a new deal with a long-term customer for the supply of its 1.6T data center transceivers to support its AI workloads. The shipments are expected to start in the third quarter of the year, with completion by year-end.

Meanwhile, Applied Optoelectronics Inc. (NASDAQ:AAOI) is currently underway with the expansion of its manufacturing facility in Taiwan, to be completed by its new production site in Sugar Land, Texas.

“We expect that we will soon have the largest production capacity for 800G and 1.6T transceivers in the US, and including both our US and overseas production, we continue to expect to be able to produce over 500,000 units of combined 800G and 1.6T transceivers per month by the end of this year,” Applied Optoelectronics Inc. (NASDAQ:AAOI) Chairman and CEO Thompson Lin said.

Following the news, investment firm Rosenblatt raised its price target for the stock by 12 percent to $140 from $125 previously, while reaffirming its “buy” issuance.

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