Applied Optoelectronics (AAOI) Stock Is Trending Overnight After Popping Over 20% On Thursday: What's Going On?

Applied Optoelectronics (NASDAQ:AAOI) shares are trending on Thursday night.

$124M In Orders Since Mid-March

Shares of the manufacturer and supplier of fiber-optic networking products jumped 4.76% after hours to $108.86 on Thursday after it secured a $71 million 800G transceiver order from a major hyperscale customer, bringing total orders from that client to $124 million since mid-March.

An 800G transceiver is a high-speed optical module that supports data transmission at 800 Gbps. It is essential for artificial intelligence, cloud computing and next-generation data centers.

According to Applied Optoelectronics, this will more than double its existing backlog from that client.

Deliveries for the original $53 million order are set to begin in the second quarter and finish by the third quarter. The new $71 million order is expected to be fully delivered by the end of the year.

Thompson Lin, founder and CEO of Applied Optoelectronics, said the order reflects “the customer’s confidence in AOI and the growing demand for 800G optics.”

Lin also disclosed that the Texas-based company shipped the first 10,000 units of an 800G single-mode transceiver to a second hyperscale data center customer.

In February, the company reported fourth-quarter 2025 results. AAOI posted earnings per share of -$0.01, beating the estimate of -$0.13 by 92.31% and reported revenue of $134.27 million, exceeding the $130.68 million estimate by 2.75%.

Trading Metrics, Technical Analysis

Applied Optoelectronics has a market capitalization of $7.81 billion, with a 52-week range of $128.96 to $9.72.

The stock has a Relative Strength Index (RSI) of 56.69.

In March, Rosenblatt maintained its Buy rating on Applied Optoelectronics, raising its price target from $125 to $140.

Over the past 12 months, the small-cap stock of the technology company has gained 551.07%.

AAOI is currently trading at about 79% of the way between its 52-week low and high.

AAOI’s long-term trend and strong positioning suggest continued upside potential.

With a strong Momentum in the 99th percentile, Benzinga’s Edge Stock Rankings indicate that AAOI has a positive price trend across all time frames.

Applied Optoelectronics-Photo by Mino Surkala via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.