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Applied Optoelectronics shares soar 7X on booming AI optical demand exceeding supply

Market News
18 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Applied Optoelectronics (AAOI) shares surged nearly sevenfold due to hyperscaler demand for AI optical infrastructure outpacing available supply. The company expects demand for 800G and 1.6T optics to exceed production capacity through mid-2027, prompting plans to increase laser fabrication capacity by 350% and target monthly shipments of 930,000 transceivers by 2027. Revenue forecasts are around $2.57 billion for 2027, but management sees potential for over $5 billion annually. Long-term goals include gross margins of 35-40% and EBITDA above $700 million through automation and vertical integration, signaling strong growth and profitability ahead.

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