Applied Optoelectronics Inc. (AAOI) shares jumped 15% following confirmation of a significant volume order from a leading hyperscaler, underscoring strong demand in optical communications infrastructure. The deal marks a major milestone for the company’s data center networking segment.
- AAOI shares rose 15% following a major order from a top hyperscaler.
- Order includes over 100,000 optical modules valued at $120 million.
- Deliveries span multiple quarters through 2026, with first shipments in Q1 2026.
- Expected to add $45 million to fiscal 2025 revenue and raise backlog to over $300 million.
- Confirms AAOI’s leadership in silicon photonics for data center optics.
- Order reflects sustained demand from hyperscalers for AI and cloud infrastructure.
Applied Optoelectronics Inc. (AAOI) posted a 15% intraday surge in share price after announcing a substantial order from a top-tier hyperscaler for high-speed optical interconnect products. The agreement calls for the delivery of over 100,000 optical modules, with a total value exceeding $120 million, according to company disclosures. The order, which spans multiple delivery quarters through 2026, is expected to significantly bolster AAOI’s revenue and backlog in the data center optics space. The deal reflects growing demand for advanced optical components driven by expanding AI workloads and cloud infrastructure scaling. AAOI’s proprietary silicon photonics technology positions the company as a key supplier for next-generation data center networks requiring high bandwidth and energy efficiency. The hyperscaler’s selection of AAOI underscores confidence in the company’s ability to meet stringent performance and reliability standards at scale. Financially, the order is projected to contribute approximately $45 million to AAOI’s fiscal 2025 revenue and increase its backlog to over $300 million. The company also confirmed that production is ramping up immediately, with initial shipments scheduled for the first quarter of 2026. This order follows a series of similar awards in 2024, signaling sustained momentum in the firm’s strategic market positioning. Market participants responded positively, with analysts upgrading their outlook on AAOI’s growth trajectory. The stock’s performance outpaced broader semiconductor and tech indices, highlighting investor confidence in the company’s execution and long-term demand outlook. The hyperscaler’s identity was not disclosed, but the scale and scope of the agreement suggest involvement from one of the world’s largest cloud providers.