Applied Optoelectronics (AAOI) Soars 12.62% on Data Center Transceiver Shipment

Applied Optoelectronics (AAOI) surged 12.62% in pre-market trading on June 12, 2025, driven by the company's first volume shipment of data center transceivers, marking a significant milestone in its product offerings.

Applied Optoelectronics reported its highest quarterly CATV revenue in Q1 2025, with a year-over-year revenue increase of over 100%. The company's gross margin expanded by more than 1,000 basis points, reflecting improved profitability. Additionally, the company is set to expand production capacity for 800G and higher transceivers, aiming to produce over 200,000 pieces per month by mid-2026. Positive customer feedback on the company's domestic production plans further boosted investor confidence.

Despite these positive developments, the company faced a sequential revenue decline in the data center segment due to seasonality and inventory digestion from a major customer. The non-GAAP net loss for Q1 was $0.9 million, indicating ongoing financial challenges. The company also anticipates a modest pullback in CATV revenue in Q2 due to production retooling and supply constraints affecting the demand for certain 100G products. Additionally, the company faces risks related to tariffs, which could impact future financial performance and operational costs.