Tech and infrastructure stocks surged last week driven by AI and data center momentum. Applied Optoelectronics led with a 37.18% gain after securing a $71 million order for data center transceivers. Nebius jumped 33.92% on reports of acquiring AI21 Labs, while CoreWeave gained 25.63% following deals with Anthropic, Meta, and Google. Intel rose 22.42% after announcing its Terafab project participation.

Applied Optoelectronics Inc. (NASDAQ: AAOI) announced a new volume order exceeding $53 million from a major hyperscale customer for 800G single-mode data center transceivers to support AI infrastructure expansion. Shipments are expected to begin in Q2 2026 and complete by mid-Q3 2026, with this order anticipated to be the first of multiple orders as the customer scales deployments across clusters and regions.

Applied Optoelectronics Inc. (AOI) announced its participation at OFC 2026 where it will showcase its 25dBm ultra-high power ELSFP laser and comprehensive transceiver range (100G to 1.6T) designed for AI datacenter infrastructure. The company highlighted its new 210,000 square foot manufacturing facility in Texas and demonstrated a 6.4T On-Board Optics solution. AOI also received its first volume order for 1.6T data center transceivers from a major hyperscale customer.

Ondas (ONDS) surged 5.24% on news of a strategic partnership with Palantir Technologies and World View to develop an AI-driven defense platform integrating drones, balloons, and ground robots. The partnership follows recent announcements of a merger with Mistral and acquisition of Bird Aerosystems, signaling Ondas' shift toward defense and security. The stock has gained 57.47% over the past six months, with Needham & Company maintaining a Buy rating.

Applied Optoelectronics Inc. (NASDAQ: AAOI) announced it received its first volume order exceeding $200 million for 1.6T data center transceivers from a major hyperscale customer. The company expects shipments to begin in Q3 2026 and plans to achieve production capacity of over 500,000 combined 800G and 1.6T transceiver units monthly by year-end, supported by facility expansions in Texas and Taiwan.

Nvidia announced partnerships with Coherent and Lumentum for optical technology development, causing those stocks to rise 14-15%. Surprisingly, smaller optics companies nLIGHT and Applied Optoelectronics jumped even higher by 20-21%, as investors bet they could become future Nvidia partners or acquisition targets. However, the author expresses skepticism about whether Nvidia will actually pursue these smaller companies over established sector leaders.

1492 Capital Management acquired 215,987 shares of Applied Optoelectronics (AAOI) for approximately $7.53 million, making it the fund's third-largest holding at 2.88% of AUM. The investment reflects confidence in AAOI's strong performance driven by high demand for its 800G optical transceivers used in AI data centers, with the stock up 57% over the past year and revenue growing 115% in the first nine months of 2025.

The Supreme Court ruled 6-3 that President Trump's sweeping global tariffs were unconstitutional, finding that the International Emergency Economic Powers Act does not authorize the president to impose tariffs without clear congressional authorization. The decision triggered a sharp rally across U.S. equities, with 10 stocks posting significant gains following the ruling that invalidates tariffs that had reached up to 145% on some products.

Applied Optoelectronics' Chief Legal Officer David Kuo sold 12,500 shares on Dec. 23, 2025, as part of a pre-arranged Rule 10b5-1 trading plan adopted in May 2025, which is not a red flag for investors. The sale occurred near the company's 52-week high of $41.96. While AAOI is experiencing strong revenue growth (Q3 2025: $118.6M vs. $65.2M YoY) and positive momentum, the stock's elevated price-to-sales ratio makes it not ideal for new purchases at current levels.

Applied Optoelectronics Inc. will demonstrate its 800G OSFP 2xSR4 multimode optical transceiver at ECOC 2025, highlighting its 100G VCSEL technology for short-reach data center connections.

Oracle announced massive cloud infrastructure expansion plans, potentially building 37 new data centers. Three technology stocks - Credo, Applied Optoelectronics, and Coherent - could benefit from increased demand for data center components and interconnect technologies.

Applied Optoelectronics has seen significant stock growth driven by strong performance in AI and networking markets, with impressive data center and cable TV sales, and potential for future expansion in high-speed networking technologies.