Core Insights - Applied Optoelectronics, Inc. (NASDAQ:AAOI) experienced a significant stock price increase of 20.98% on a recent Monday, closing at $33.79, driven by optimism in the artificial intelligence sector and recent deal-making activities [1][3]. Company Overview - Applied Optoelectronics is a leading developer of advanced optical products, particularly those utilized in modern data centers, and is positioned to benefit from the rapid growth in AI as major technology companies invest billions into the sector [2][4]. Technological Advancements - The company recently demonstrated its 100G VCSEL technology with an 800G OSFP 2xSR4 multimode optical transceiver at the ECOC 2025 event in Copenhagen, showcasing its innovative capabilities [3]. - Applied Optoelectronics' vertically integrated design and manufacturing capabilities allow for the production of 100G VCSELs at 850nm, which are essential for short-reach connections in hyperscale data centers and AI clusters [4]. Market Position - The company is recognized for delivering cost-efficient, low-power optical solutions designed for the next generation of short-reach multimode links, indicating a strong market position in the evolving AI landscape [4].