"Applied Optoelectronics announced a more than $200 million volume order for 1.6T data center transceivers from a major hyperscale customer, its first volume order at that speed tier. It lands on top of an already strong earnings setup. AAOI reported Q4 2025 revenue of $134.27 million, up 33.9% year over year, a record quarter."
"CEO Thompson Lin noted 'considerable momentum entering 2026.' Of course, the big target that really moved AAOI shares was the company's conference call, where Lin said monthly orders of transceivers would reach $378 million per month by mid-2027. Today's 1.6T announcement is the first sign that Applied's bullish projection of revenue exceeding a $4 billion run-rate could materialize."
"To meet that demand, the company anticipates producing over 500,000 units of combined 800G and 1.6T transceivers monthly by year-end, backed by expanding facilities in Taiwan and Sugar Land, Texas."
Applied Optoelectronics (AAOI) and Lumentum (LITE) both rallied approximately 15% following a previous week's sector sell-off. AAOI's surge was driven by a $200 million volume order for 1.6T data center transceivers from a major hyperscale customer, combined with strong Q4 2025 results showing 33.9% year-over-year revenue growth to $134.27 million. Management projects 2026 revenue exceeding $1 billion with monthly transceiver orders reaching $378 million by mid-2027. The company plans to produce over 500,000 combined 800G and 1.6T transceiver units monthly by year-end. Lumentum's gains were attributed to its addition to the S&P 500 index.
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