AOI: Applied Optoelectronics Ramps 800G Transceiver Capacity as Demand Surges Across Hyperscalers

AOI to Ramp 800G Optical Module Output to 100K Units Monthly by Year-EndApplied Optoelectronics (AOI) reported strong Q1 2025 results, highlighting accelerating momentum in its datacenter optics and CATV segments. Revenue more than doubled year-over-year to $99.9 million, driven by record CATV sales and rising demand for 400G and 800G transceivers. The company secured three new design wins with an existing hyperscale customer and is now supporting qualification efforts for 800G modules across multiple hyperscalers, with expectations of a meaningful ramp in the second half of 2025.AOI aims to exit 2025 with over 100,000 units per month of 800G transceiver production capacity, 40% of which will be US-based. Its largely automated, in-house manufacturing model is central to this scale-up strategy and provides resilience amid macroeconomic uncertainty. In addition to US expansion, AOI is increasing capacity at its Taiwan facility to diversify supply and support global customer needs.Gross margins improved significantly year-over-year, with GAAP margins rising to 30.6% from 18.7%, and non-GAAP net loss narrowing to $0.9 million. The company projects Q2 revenue between $100 million and $110 million and remains confident in long-term demand drivers across datacenter and broadband infrastructure segments.Record CATV revenue in Q1 2025New design wins and ongoing 800G product qualifications with hyperscalersTargeting >100,000 800G units/month capacity by end of 202540% of 800G production expected to be US-basedAutomated, in-house manufacturing cited as strategic advantageTaiwan manufacturing expansion supports supply chain resilienceStrong outlook for 400G and 800G optics through H2 2025"We continue to see a growing demand for our 400G and 800G products and we are actively working to build out our capacity to address this demand," said Dr. Thompson Lin, Founder, President and CEO of AOI.SuggesteApplied Optoelectronics Ramps 800G Transceiver Capacity as Demand Surges Across Hyperscalers