Applied Optoelectronics (AAOI) Climbs 20.6% on Hyperscaler Order

We precocious published 10 Stocks Delivering Explosive 18-190% Gains. Applied Optoelectronics Inc. (NASDAQ:AAOI) is 1 of the past week’s dense gainers.

Applied Optoelectronics jumped by 20.56 percent week-on-week contempt slashing double-digit gains connected Friday, aft bagging a large bid from a hyperscaler for its 800G information halfway transreceivers.

On Wednesday, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that it secured a large bid from a hyperscaler, which it refused to identify, but which analysts believed to beryllium Amazon.

However, profit-taking persisted connected Friday, dragging its stock terms down by 11.73 percent to adjacent astatine $32.06 apiece. Still, the institution recorded a 39 percent leap successful intra-week trading.

“We are pleased to person our archetypal measurement bid for our 800G products from this large hyperscale customer,” said Applied Optoelectronics, Inc. (NASDAQ:AAOI) Chairman and CEO Thompson Li.

“Our customers request optical solutions that tin standard to enactment the velocity and show required for today’s AI-powered information transmissions, and we judge that AOI is uniquely positioned to conscionable the demands for high-volume transceiver shipments with our automated accumulation lines that we person spent years developing,” helium added.

Copyright: ralwel / 123RF Stock Photo

In enactment with the announcement, concern steadfast Needham & Company raised its terms people for Applied Optoelectronics Inc. (NASDAQ:AAOI) to $43 from $38 previously, portion maintaining its “buy” proposal for the stock. The caller fig marked a 34 percent upside imaginable from its latest closing price.

Additionally, Needham said it was optimistic that the institution would further person ample measurement orders from hyperscalers implicit the adjacent fewer quarters arsenic it ramps up the accumulation of its 800G transreceivers.

While we admit the imaginable of AAOI arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.