Applied Optoelectronics Eyes 800G Ramp as Data Center Demand Tops Capacity Into 2027

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Wed, May 13, 2026 astatine 9:07 AM CDT 7 min read

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Applied Optoelectronics says request for information halfway optics is moving up of supply, and it expects that spread to past done astatine slightest mid-2027. The institution besides reported its archetypal shipments of 800G products and sees that concern driving maturation up of cablegram TV.
The institution is ramping capableness successful Taiwan and Texas, with caller facilities acceptable to travel online aboriginal this twelvemonth and further buildings precocious purchased for expansion. Management said the propulsion should enactment gross maturation and assistance the institution determination toward astir 1 cardinal transceivers per month of capableness adjacent year.
800G is expected to stay the main information halfway workhorse adjacent arsenic 1.6T products statesman shipping aboriginal this twelvemonth and ramp into adjacent year. Applied Optoelectronics is targeting gross margins of mid-30% by year-end and 40% by the extremity of adjacent twelvemonth arsenic higher-speed products summation mix.

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Applied Optoelectronics (NASDAQ:AAOI) expects a crisp second-half ramp successful its information halfway optics concern arsenic request for higher-speed transceivers continues to outstrip the company’s manufacturing capacity, Chief Strategy Officer and Chief Financial Officer Dr. Stefan Murry said astatine Needham’s 21st Annual Technology, Media and Consumer Conference.

In a treatment with Needham expert Ryan Koontz, Murry said Applied Optoelectronics’ archetypal 4th was mostly successful enactment with the company’s expectations. He highlighted the company’s archetypal shipments of 800G products during the 4th arsenic a “significant milestone” and said the information halfway concern surpassed the cablegram TV conception for the archetypal clip successful a while.

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“We expect that inclination to continue,” Murry said, citing expected maturation successful information halfway revenue. He added that the cablegram TV conception whitethorn besides grow, but not astatine the aforesaid complaint arsenic the information halfway business.

Demand Exceeds Capacity, Murry Says

Asked astir the company’s outlook aft Koontz referenced a raised full-year usher to $1.1 billion, Murry said the 2nd 4th is simply a “very engaged modulation quarter” focused connected expanding manufacturing infrastructure. He said the institution guided to quarterly gross “a small shy of $200 million,” oregon astir $190 million, and feels “really good” astir that number.

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Murry said request is not presently the company’s constraint. “We person plentifulness of demand, much request than we tin supply,” helium said, adding that Applied Optoelectronics expects request to transcend capableness “at slightest until mediate of 2027, possibly beyond.”

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