We recently published 10 Stocks That Deliver Explosive Gains of 18-190%. Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of last week’s big winners.
Applied optoelectronics rose 20.56 percent week-on-week despite paring double-digit gains on Friday, after securing a major hyperscaler order for its 800G data center transceivers.
On Wednesday, Applied Optoelectronics Inc. (NASDAQ:AAOI) said it had secured a large order from a hyperscaler, which it declined to identify but which analysts believed was Amazon.
However, profit-taking persisted on Friday, dragging its share price down 11.73 percent to close at $32.06 each. Still, the company posted a 39 percent increase in intraweek trading.
“We are pleased to receive our first volume order for our 800G products from this important hyperscale customer,” said Thompson Li, President and CEO of Applied Optoelectronics, Inc. (NASDAQ:AAOI).
“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 AOI is uniquely positioned to meet the demands of high-volume transceiver shipments with our automated production lines that we have spent years developing,” he added.
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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” rating on the stock. The new figure marked a 34 percent upside potential from its last closing price.
Additionally, Needham said he was optimistic the company would receive more high-volume orders for hyperscalers over the next few quarters as it ramps up production of its 800G transceivers.
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Disclosure: None. This article was originally published in Internal jumpsuit.