Applied Optoelectronics stock has surged 237% this year, but analyst sees room to run to $140

"Applied Optoelectronics disclosed a $71 million order for 800G single-mode data center transceivers on April 2 and a $53 million order on March 23, totaling $124 million from a major hyperscale customer since mid-March."

"The company's CFO stated that 'this revenue level is limited by our production capacity and supply chain, not market demand, which we believe is much larger.'"

"CEO Thompson Lin reinforced that view, noting the company expects to receive 'more than $100,000,000 of 800G transceiver orders within a few months' and 'more than $200,000,000 of 1.6T transceiver orders.'"

"Management is guiding for Q1 2026 revenue of $150 million to $165 million and projects full-year 2026 revenue could exceed $1 billion."

Applied Optoelectronics has gained attention as Rosenblatt Securities increased its price target to $140 following a $200 million transceiver order. The stock has risen 237.46% year-to-date, with 3 buy and 3 hold ratings. Recent orders include $71 million for 800G transceivers and $53 million, totaling $124 million from a major customer. The CFO noted revenue is limited by production capacity, not demand. The company anticipates over $100 million in 800G orders soon and projects 2026 revenue could exceed $1 billion.

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