Applied Optoelectronics (AAOI) Soars 24.8% on New Pump Laser for AI

Core Insights - Applied Optoelectronics, Inc. (NASDAQ:AAOI) has seen a significant stock price increase of 24.82% to close at $39.10, driven by investor interest following the announcement of a new pump laser aimed at the AI market [1][4]. Product Announcement - The company introduced a new 400-milliwatt narrow-line-width pump laser designed to cater to the increasing demand for silicon photonics and co-packaged optics (CPO) in AI data centers [2]. - This new laser technology addresses performance limitations associated with broader line width or higher noise figures, enhancing overall efficiency [2]. Technical Capabilities - The 400mW laser can be integrated directly into semiconductor chip-scale systems, providing a high-performance light source for CPO and silicon photonics applications that require precision and stability [3]. - These laser-powered chips can also function as high-efficiency external sources, supplying necessary pump power for multiple optical communication channels [3]. Strategic Impact - The introduction of this technology is expected to elevate laser power, coherence, and stability, facilitating scalable optical I/O and simplifying system design, which is crucial for the industry's shift towards co-packaged optics at 800G and beyond [4].