Just a gentle reminder:
$Applied Optoelectronics(AAOI.US) expects to have the largest production capacity of 1.6T optical transceivers in America.Just as optical TAM is expected to ramp to $100B in a bull case (Lightcounting).AOI: “We expect that we will soon have the largest production capacity for … 1.6T transceivers in the US” from their former ER transcript.They expect shipments to begin Q3 of 2026 and projected $378M / month capacity starting H2 2027, which is $4.35B annualized if hyperscalers buy anything they make.We’re in H1 of 2026, so it’s a tad early to be panicking from market volatility. Since AOI does the entire supply chain from InP laser fab, design, and assembly all captive. And especially in the USA + Taiwan operations that they’re reshoring (rather than sourcing to China/Malaysia/Thailand)Markets miss this part especially:-> They have TAM expansion optionality for ELS to merchant models in any parts of their vertically integrated supply chain.$Applied Optoelectronics(AAOI.US) is trading at $6.4B largely because of execution uncertainty and macro. And execution will always be an speculative overhang until it comes time to deliver.But if there’s any indication that they hit their targets and macro clears up, we probably won’t see current valuations again.Source: Serenity
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments