What happened
Applied Optoelectronics Inc. (NASDAQ:AAOI) rose 13.31 percent to $191.55 per share on Monday, ending two consecutive days of losses. The move mirrored a 3.07 percent jump in the Nasdaq after the US and Iran announced the end of a four-month war and reopening of the Strait of Hormuz.
Why it matters
Nvidia CEO Jensen Huang endorsed the optics sector as essential to AI infrastructure scaling, stating that "you scale out with optics, and you scale across with optics." Investment firm Rosenblatt expects key players in the optics industry to expand production capacities by approximately 12x through 2030 to meet AI demand, though supply has lagged—indium phosphide-based datacom components fell 50 percent short of demand last year.
What to watch
Applied Optoelectronics is expanding its manufacturing facility in SugarLand, Texas, and doubled its initial capital expenditure commitment to $300 million（約480億円） by the end of 2027 to support growing customer needs in the AI infrastructure space.
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