We recently published 10 Stocks Delivering Explosive 18-190% Gains. Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the last week’s heavy gainers.
Applied Optoelectronics jumped by 20.56 percent week-on-week despite slashing double-digit gains on Friday, after bagging a major order from a hyperscaler for its 800G data center transreceivers.
On Wednesday, Applied Optoelectronics Inc. (NASDAQ:AAOI) said that it secured a major order from a hyperscaler, which it refused to identify, but which analysts believed to be Amazon.
However, profit-taking persisted on Friday, dragging its share price down by 11.73 percent to close at $32.06 apiece. Still, the company recorded a 39 percent jump in intra-week trading.
“We are pleased to receive our first volume order for our 800G products from this major hyperscale customer,” said Applied Optoelectronics, Inc. (NASDAQ:AAOI) Chairman and CEO Thompson Li.
“Our customers need optical solutions that can scale to support the speed and performance required for today’s AI-powered data transmissions, and we believe that AOI is uniquely positioned to meet the demands for high-volume transceiver shipments with our automated production lines that we have spent years developing,” he added.
Copyright: ralwel / 123RF Stock Photo
In line with the announcement, investment firm Needham & Company raised its price target for Applied Optoelectronics Inc. (NASDAQ:AAOI) to $43 from $38 previously, while maintaining its “buy” recommendation for the stock. The new figure marked a 34 percent upside potential from its latest closing price.
Additionally, Needham said it was optimistic that the company would further receive large volume orders from hyperscalers over the next few quarters as it ramps up the production of its 800G transreceivers.
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Disclosure: None. This article is originally published at Insider Monkey.
