Shares of optical communication companies are experiencing broad gains on Friday. Applied Optoelectronics (AAOI.US) surged more than 12%, while Coherent (COHR.US) rose over 10%. Lumentum (LITE.US) advanced more than 6%, POET Technologies (POET.US) climbed over 5%, Corning (GLW.US) added more than 4%, and Marvell Technology (MRVL.US) gained 4%.

On August 6, Applied Optoelectronics reported its second-quarter fiscal earnings, with revenue reaching $191.9 million, an 86.4% year-over-year increase. Data center revenue surpassed $100 million for the first time, up 140% compared to the same period last year, and the company achieved non-GAAP net profitability. The company issued third-quarter guidance in the range of $255 million to $290 million, while maintaining its full-year revenue target of approximately $1.1 billion.

During the earnings call, management highlighted robust demand tied to AI infrastructure, noting that customer demand exceeds current supply capacity by roughly 20% to 40%. Revenue from 800G products more than doubled sequentially, with expectations for nearly fivefold growth in the third quarter. The company disclosed that its 1.6T product is nearing completion of customer certification and is set to begin shipping, with over $200 million in orders already secured, the majority of which are slated for delivery in the fourth quarter.