AI Data Center Optical Communication Stocks Surge by 700 Billion Won in One Day

Applied Optoelectronics Inc. (NASDAQ: AAOI), a supplier of fiber-optic communication components, surged 7.15% on the Nasdaq, closing at $92.50. Its market capitalization rose by roughly $536 million in a single day to about $6.96 billion (approximately ₩9.4 trillion), and trading volume exceeded 11.15 million shares.

On March 17, the company hosted an investor session at the OFC Conference in Los Angeles, detailing its growth strategy with next-generation products—800G-class ultra-high-speed optical transceivers for data centers and lasers designed for AI data centers. Earlier, on February 26, Applied Optoelectronics entered into an equity distribution agreement to offer up to $250 million of common stock through securities firms, expanding its capacity for capital expenditures and future growth funding.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics designs and manufactures optical transceivers and lasers for data centers, cable TV systems, and telecom networks. Backed by supply agreements with major hyperscalers such as Amazon and Microsoft, the company is viewed as a key beneficiary of AI data center investments. However, its long track record of operating losses and frequent equity issuances have made its stock notably volatile.