Achieving High Growth: Applied Optoelectronics' Surge in Share Price and Total Shareholder Return

Applied Optoelectronics (AAOI) has experienced significant growth in its share price, surging over 50% in 7 days and exceeding a 2,200% total shareholder return in 3 years. The company's announcements of a 400-milliwatt pump laser for silicon photonics and its first volume 800G transceiver order from a major hyperscaler have contributed to this growth. However, with the stock trading above consensus targets, the question remains whether investors are underestimating the next wave of AI-driven orders or whether the market has already priced in that growth.