Applied Optoelectronics Jumps 8.9% on $200M 1.6T Transceiver Deal and Capacity Expansion
Applied Optoelectronics jumped 8.92% to a high of $127.39 after sealing a $200 million deal for 1.6T data center transceivers, with deliveries starting in Q3 and completing by year-end. Rosenblatt raised its price target 12% to $140 and projects capacity of 500,000 800G and 1.6T units per month by year-end.
1. $200 Million Supply Agreement
Applied Optoelectronics secured a $200 million contract to supply 1.6T data center transceivers to a long-term customer, with shipments commencing in the third quarter and concluding by the end of the year.
2. Stock Hits Record High
Shares climbed to an intraday peak of $127.39, finishing up 8.92% at $120.49 as investors reacted to the deal and expansion news.
3. Manufacturing Expansion Plans
The company is expanding its Taiwan facility and establishing a new production site in Sugar Land, Texas, targeting combined monthly output of 500,000 800G and 1.6T transceivers by year-end.
4. Analyst Price Target Raise
Rosenblatt increased its price target by 12% to $140 and maintained a buy rating, citing strengthened AI workload demand and enhanced production capacity.