Applied Optoelectronics Up 7.5% on Spectrum QuantumLink Deal and $324M AI Orders
AAOI•Applied Optoelectronics shares jumped 7.5% after securing a deal to deploy QuantumLink software for 1.8GHz amplifiers across Spectrum’s network, bolstering its broadband business. Its AI data center segment holds over $324M in hyperscaler orders through mid-2027, driving 64.3% revenue growth and a 402.4% YTD stock surge at 8.7x forward P/S.
1. Spectrum QuantumLink Deal
Applied Optoelectronics will provide its QuantumLink™ network management software to control all connected 1.8GHz amplifiers across Spectrum’s network, marking a strategic win for its HFC broadband business and reinforcing its role in cable operator infrastructure upgrades.
2. AI Data Center Orders
The company has secured over $324 million in hyperscaler orders for its optical transceivers through mid-2027, underlining robust demand from AI data center buildouts that has outstripped production capacity and positioned AAOI as a key infrastructure supplier.
3. Financial Performance & Valuation
Revenue growth accelerated to 64.3% over the past year, while the stock has climbed 402.4% year-to-date. AAOI trades at an 8.7x forward price-to-sales multiple, reflecting investor appetite for its dual broadband and AI data center expansion story despite premium valuation.
