Applied Optoelectronics shares traded about 15% higher near $149.50 on Friday as bullish technical signals and strong AI-data-center demand combined to drive the stock higher. Since the Aug. 6 close, when the company reported Q2 results, the stock has gained about 21%, rising from roughly $124 to around $149.50. The most important technical move came when it broke $140 with a major increase in trading volume, and the stock then held above the breakout level and continued making higher highs, reaching close to $150. Momentum indicators also support the breakout, with the RSI at 63.28 and the MACD line at 3.22 above the signal line at 2.88. The chart suggests that if the stock sustains the $150 level, Raymond James' $178 and Needham's $190 targets could come into focus. Q2 revenue reached $191.9M, while management expects Q3 revenue of $255M-$290M and said 800G revenue could grow nearly 5x sequentially. Management also expects 1.6T shipments to begin later in Q3, and 2026 revenue to be around $1.1B. AI data-center demand remains the key longer-term driver, with management saying demand continues to exceed production capacity through mid-2027. The stock has dramatically outperformed the S&P 500 this year, gaining 313.6% as compared with the 13.93% returns of the index.
