{"id":75047,"date":"2026-06-16T03:52:13","date_gmt":"2026-06-16T03:52:13","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/75047\/"},"modified":"2026-06-16T03:52:13","modified_gmt":"2026-06-16T03:52:13","slug":"applied-optoelectronics-aaoi-soars-13-as-us-iran-peace-deal-propels-ai-stocks","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/75047\/","title":{"rendered":"Applied Optoelectronics (AAOI) Soars 13% as US-Iran Peace Deal Propels AI Stocks"},"content":{"rendered":"\n

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks Stealing the Spotlight from Wall Street Giants.<\/a><\/p>\n

Applied Optoelectronics ended two straight days of losses on Monday, surging 13.31 percent to end at $191.55 apiece, mirroring the rally in the broader market, while investors poured funds back into industries riding the AI boom.<\/p>\n

The stock mimicked the steep rally in Nasdaq, jumping 3.07 percent, after the US and Iran officially announced the end of a four-month-long war and the reopening of the Strait of Hormuz.<\/p>\n

\"Applied Applied Optoelectronics <\/p>\n

Photo from Applied Optoelectronics website<\/p>\n

The news immediately dragged prices of oil and gas products, which have since been benefiting from the war, due to supply constraints and logistics bottlenecks.<\/p>\n

Meanwhile, optimism for Applied Optoelectronics Inc. (NASDAQ:AAOI) was further supported by Nvidia Corp. CEO Jensen Huang\u2019s validation of the sector, saying that the right strategy \u201cis to scale up with copper as long as you can. After that, you scale up further with optics.\u201d<\/p>\n

\u201cYou scale out with optics, and you scale across with optics. So you use optics wherever you must, you use copper wherever you can,\u201d he noted.<\/p>\n

Apart from Huang, investment firm Rosenblatt also issued a highly optimistic outlook for the optics sector, saying that it expects key players to expand production capacities by approximately 12x through 2030 to support the growing demands from AI. It noted, however, that the expansion rate will remain slower than the rapid demand growth from AI.<\/p>\n

Rosenblatt noted that last year alone, the supply of indium phosphide-based Datacom components lagged by 50 percent. However, this gives room for huge growth and expansion opportunities for key players such as Applied Optoelectronics Inc. (NASDAQ:AAOI).<\/p>\n

For its part, Applied Optoelectronics Inc. (NASDAQ:AAOI) is underway with the expansion of its new manufacturing facility in SugarLand, Texas, as it aims to support the growing needs of its customers.<\/p>\n

The company initially programmed $150 million in capital expenditures for the site development, and later doubled it to $300 million by the end of 2027.<\/p>\n

While we acknowledge the potential of AAOI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the\u00a0best short-term AI stock<\/a>.<\/p>\n

READ NEXT:\u00a033 Stocks That Should Double in 3 Years<\/a> and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy<\/a>.\u00a0<\/p>\n

Disclosure: None. Follow Insider Monkey on Google News<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks Stealing the Spotlight from Wall Street Giants. Applied…\n","protected":false},"author":2,"featured_media":3214,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24,3217,3218,25,41252],"class_list":["post-75047","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ai","tag-ai","tag-applied-optoelectronics","tag-applied-optoelectronics-inc","tag-artificial-intelligence","tag-wall-street-giants"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/75047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=75047"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/75047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/3214"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=75047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=75047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=75047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}