Applied Optoelectronics Revenue Jumps 86% as AI Data-Center Optics Ramp
Applied Optoelectronics reported second-quarter revenue of $191.9 million, up 86% year over year, as hyperscale data-center demand accelerated for 800G and 1.6T optical transceivers.
Why it matters: Optical connectivity is becoming a constrained and increasingly valuable layer of the AI infrastructure stack as GPU clusters scale.
Applied Optoelectronics reported sharply higher quarterly revenue as hyperscale data centers increase spending on the optical networking equipment required to connect increasingly large artificial-intelligence clusters. Second-quarter revenue reached $191.9 million, an 86% increase from a year earlier, and the company reported its first adjusted quarterly profit since 2023. The company is ramping 800G products and preparing higher-bandwidth 1.6T systems as AI clusters require more data to move between accelerators. AOI is also expanding manufacturing capacity in Texas to support the optical-transceiver ramp. The results add another data point to a widening AI infrastructure market that extends beyond GPUs into networking bandwidth, photonics and optical interconnects.