Applied Optoelectronics shares rose 3% in overnight trading after the company announced a new order from a major hyperscaler.

Applied Optoelectronics Receives Data Center Order

Applied Optoelectronics announced that one of its major hyperscale customers placed an initial volume order for 800G single-mode data center transceivers totaling more than $53 million.

The undisclosed customer plans to use the transceivers to help expand its network capacity for AI-driven workloads. Applied Optoelectronics said the order will specifically support GPU cluster buildup, in line with the customer’s large-scale infrastructure expansion plans. 

“AI infrastructure expansion is accelerating, and requires significantly higher bandwidth at scale,” said Thompson Lin, founder, chairman and CEO of Applied Optoelectronics.

“Our customers are adopting 800G not just for capacity and performance, but to manage long-term operating costs. Deploying 800G now helps to prevent network bottlenecks, improves power efficiency and lowers cost per bit, reducing the need for frequent upgrades.”

Applied Optoelectronics, which provides advanced optical and HFC networking products that power AI, said shipments are expected to start in the second quarter and be completed by the middle of the third quarter. The company noted that it expects subsequent orders from the undisclosed customer.