Applied Optoelectronics Inc. (AOI) saw its stock rise over 18% following a bullish sales outlook and confirmation of manufacturing ramp-up for next-generation optical components. The company reported robust demand across data center and telecom infrastructure markets.
- Applied Optoelectronics reported a 25% year-over-year increase in Q4 orders, driven by demand for 400G and 800G optical modules.
- The company confirmed full-scale manufacturing ramp-up at its facility in Suzhou, China, with production capacity increasing by 40% in Q1 2026.
- Revenue guidance for fiscal 2026 was raised to $480 million to $510 million, up from the previous forecast of $420 million to $460 million.
- New product introductions, including a 1.6T optical transceiver prototype, are expected to enter pilot production by Q3 2026.
- Gross margin is projected to expand to 38% in 2026, up from 34% in 2025, due to improved manufacturing yields and cost optimization.
- The company added 12 new enterprise customers in Q4 2025, including three global data center operators.
Applied Optoelectronics Inc. (AOI) delivered a significant stock rally, with shares climbing 18.3% in after-hours trading after announcing expanded revenue guidance and progress in scaling production of its new 400G and 800G optical transceivers. The company cited strong order momentum from major cloud service providers and Tier-1 telecom operators, particularly in North America and Asia-Pacific regions.
The information presented is derived from publicly available company disclosures and market data as of the reporting period. No third-party data providers or proprietary sources were referenced.