Applied Optoelectronics Launches 400mW Laser to Meet AI Data Center Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
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Source: Newsfilter
- Laser Technology Innovation: Applied Optoelectronics' new 400mW narrow-linewidth pump laser, developed over several years, aims to meet the growing demand for silicon photonics and co-packaged optics in AI data centers, significantly enhancing the stability and performance of light sources.
- Performance Enhancement: This laser can deliver over 400mW of optical power at 50°C, addressing coupling, splitting, and routing losses while supporting 800G/1.6T power budgets without exceeding thermal limits, thereby improving overall system efficiency.
- Increased System Reliability: By minimizing wavelength drift and noise, the laser stabilizes silicon photonics devices, simplifies wavelength locking, and enhances system yield and uptime, ensuring consistent performance as systems scale.
- Broad Market Prospects: With samples now available to select customers and volume production expected in 2026, the launch of this technology will accelerate the industry's transition to co-packaged optics at 800G and beyond, further solidifying Applied Optoelectronics' leadership in the optical networking market.
Analyst Views on AAOI
Wall Street analysts forecast AAOI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAOI is 38.25 USD with a low forecast of 15.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 34.890
Low
15.00
Averages
38.25
High
50.00
Current: 34.890
Low
15.00
Averages
38.25
High
50.00
About AAOI
Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies, and modules to complete turn-key equipment. The Company also designs, manufactures, and integrates its own analog and digital lasers using the proprietary Molecular Beam Epitaxy (MBE) and Metal Organic Chemical Vapor Deposition (MOCVD) alternative processes for the fabrication of lasers. The Company manufactures lasers and laser components and performs research and development activities for laser component and optical module products. The Company offers its fiber-optic networking products, primarily for four networking end-markets, such as cable television, (CATV), Internet data center, telecommunications, (telecom), and fiber-to-the-home (FTTH). The Company has manufacturing facilities in Taipei, Taiwan and Ningbo, China.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
