US Stock Market Move | Applied Optoelectronics (AAOI.US) rose by more than 10%. The new "retail tycoon" Serenity believes that its future performance growth potential may be underestimated by the market.

On Monday, Applied Optoelectronics (AAOI.US) stock price rose, as of the time of writing, the stock rose over 10%, reaching $175.6. Up-and-coming "small investor guru" Serenity recently stated on social media that Applied Optoelectronics is their favorite optical communication concept stock. With large-scale cloud service providers continuing to increase investments in AI data centers, the company's future performance growth potential may be underestimated by the market. Serenity mentioned that they started building their position in AAOI last year when the stock price was around $28, mainly based on the belief that the company was likely to receive certifications and orders from large tech companies such as Amazon.com, Inc. (AMZN.US) and Microsoft Corporation (MSFT.US). Following this, the company disclosed progress on 1.6T optical modules and other large-scale orders in their financial reports, further strengthening market confidence in its growth prospects. At that time, the AAOI stock price had already risen to around $70. In 2026, the AAOI stock price continued to climb to around $150. The core logic driving the company's valuation increase is gradually being realized, including factors such as tight laser manufacturing capacity, surging demand for high-speed optical interconnects in AI data centers, and support from US domestic manufacturing policies, among other favorable factors. Furthermore, discussions about the future positioning of AI chip giants NVIDIA Corporation (NVDA.US) and AMD (AMD.US) in the optical communication field have further increased investor interest in industry-related companies. Some institutions had previously estimated that the total addressable market (TAM) for the optical communication market is expected to significantly expand in the coming years, providing continuous growth momentum for industry leaders.