Applied Optoelectronics price target raised to $50 from $35 at Rosenblatt

Rosenblatt raised the firm’s price target on Applied Optoelectronics (AAOI) to $50 from $35 and keeps a Buy rating on the shares. The company received its first volume order for 800G transceivers from a major hyper scale customer to support artificial intelligence data center growth, the analyst tells investors in a research note. The firm believes the announcement suggests one of Applied’s 800G transceivers, likely 800G OSFP 2xFR4, has gained final product qualification with Amazon and will begin shipping for revenues. “This is unquestionably positive news,” according to Rosenblatt. However, the firm thinks the stock could see a “brief” selloff on the news given the recent rally. It recommends buying Applied Optoelectronics “regardless of how the stock trades immediately following the announcement.”