Applied Optoelectronics Inc. (NASDAQ:AAOI) shares are popping Wednesday as fiber-optic connectivity stocks gain after CoreWeave’s earnings and comments on strong demand.
- Applied Optoelectronics shares are powering higher. Why are AAOI shares rallying?
Applied Optoelectronics Stock Rises With CoreWeave
Shares of fiber-optic connectivity firms, which supply the parts that carry data through networks, are higher Wednesday, and Applied Optoelectronics is one of them. CoreWeave Inc. (NASDAQ:CRWV), an AI neocloud provider that rents out computing power, set off the move with its quarterly report after Tuesday’s close.
Sales came in at $3.66 billion, ahead of the $3.55 billion forecast and 168% above last year. A 95-cent adjusted shortfall per share at CoreWeave beat the $1.16 shortfall analysts predicted, and customer orders on its books totaled $132.5 billion.
Michael Intrator, CoreWeave’s chief executive, labeled it “a breakout quarter for CoreWeave.” Analysts had pegged 2026 revenue at $12.86 billion, but CoreWeave now guides to $13 billion up to $13.3 billion.
An executive said nearly all of CoreWeave’s capacity through 2027 is booked, according to the earnings call. CoreWeave plans $37 billion up to $39 billion in capital spending and targets over 1.85 gigawatts of operating power capacity by year-end. Intrator said the company also expects about $9 billion in customer prepayments and deposits over the next three months, one of several funding sources.
CoreWeave’s report bears on optical suppliers through AI data center spending. Fiber-optic transceivers connect the servers and network switches within AI clusters, so spending plans and booked capacity at a large buyer of that infrastructure feed into the order outlook for component makers.
AAOI Shares Are Soaring
AAOI Price Action: Applied Optoelectronics shares were up 16.89% at $56.48 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Mino Surkala/Shutterstock