Applied Optoelectronics Eyes 800G Ramp as Data Center Demand Tops Capacity Into 2027
Key takeaways
- Applied Optoelectronics says demand for data center optics is running ahead of supply, and it expects that gap to last through at least mid-2027.
- The company is ramping capacity in Taiwan and Texas, with new facilities set to come online later this year and additional buildings recently purchased for expansion.
- 800G is expected to remain the main data center workhorse even as 1.6T products begin shipping later this year and ramp into next year.
Applied Optoelectronics Eyes 800G Ramp as Data Center Demand Tops Capacity Into 2027 Market Beat Wed, May 13, 2026 at 9:07 PM GMT+7 7 min read AAOI Applied Optoelectronics logo Key Points Interested in Applied Optoelectronics, Inc.? Here are five stocks we like better.
Applied Optoelectronics says demand for data center optics is running ahead of supply, and it expects that gap to last through at least mid-2027. The company also reported its first shipments of 800G products and sees that business driving growth ahead of cable TV.
The company is ramping capacity in Taiwan and Texas, with new facilities set to come online later this year and additional buildings recently purchased for expansion. Management said the push should support revenue growth and help the company move toward about 1 million transceivers per month of capacity next year.