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Applied Optoelectronics Inc. (NASDAQ: AAOI) secured its first volume order for 1.6T data center transceivers from a long-term hyperscale customer to improve network bandwidth for AI workloads. The order is valued at over $200 million and is expected to return the customer to a 10%+ status for AOI.

Shipments are anticipated to begin in early Q3 2026 and conclude in Q4 2026. AOI's production capacity for 800G and 1.6T transceivers is set to expand with ongoing facility enhancements in Taiwan and a new site in Sugar Land, Texas, targeting over 500,000 units per month by year-end.