What drove AAOI's strong earnings?

Surging demand for 800G optical modules in AI data centers and data center revenue surpassing $100 million.

Which Taiwan companies benefit the most?

LUXNET, Lian-Ya, and Halo reported strong MoM and YoY revenue growth, driving stock surges.

Will this trend continue?

Yes, demand for optical comms is expected to remain strong due to ongoing AI server expansion.

What's the difference between AAOI and Lumentum?

AAOI specializes in 800G modules, while Lumentum offers broader solutions from laser components to systems.

How should investors respond?

Focus on the entire optical supply chain and consider diversified investments in tech-leading firms.

AAOI's Strong Earnings Spark Surge in Silicon Photonics Group, Driving Multiple Stocks to Halt-Up

Published Aug 10, 2026 2:24 PM ・ Updated Aug 10, 2026 3:12 PM ・ 4 min read ・ Source: PR Times

U.S. optical communications giant AAOI reported record-breaking Q2 revenue with an 86% year-on-year increase and a return to profitability, boosting Taiwan's optical communications sector.

U.S. optical communications leader AAOI (AAOI-US) released its Q2 financial results last Friday, reporting an 86% year-over-year revenue increase to a record high and successfully turning a profit. This strong performance has driven Taiwan's optical communications sector to continue rising today (10th), with multiple stocks hitting their daily trading limits. Shares of Lian-Ya (3081-TW), Hwa Star Photonics (4979-TW), LUXNET (3450-TW),光环 (3234-TW), Lightway (3450-TW), and Suncom (3363-TW) surged to halt-up, while WaveOptics (3163-TW), JDSU-KY (4977-TW), and TST (6426-TW) rose over 7-9%.

Institutional analysts noted that AAOI's outperformance is positive for other key players deeply involved in AI data center optical interconnects, such as Lumentum (LITE-US) and Coherent (COHR-US), as ongoing AI data center expansion sends strong positive signals across the entire optical communications industry.

According to AAOI's report, data center-related revenue surpassed $100 million for the first time. On the product front, 800G product revenue saw a standout year-on-year increase, growing more than tenfold compared to 2025, which in turn drove Coherent (COHR-US) and Lumentum (LITE-US) stock prices to surge 13.44% and 6% respectively last Friday.

Among Taiwan's silicon photonics companies that have already announced July revenue, several delivered strong month-on-month and year-on-year growth, fueling recent stock price gains. LUXNET reported July revenue of NT$1.22 billion, up 7% month-over-month and 98% year-over-year. Lian-Ya posted NT$501 million, up 19.2% MoM and 177% YoY. Hwa Star Photonics recorded NT$501 million, up 11.8% MoM and 31.01% YoY. Halo (Guanghuan) reported NT$960.4 million, up 25.2% MoM and 96.94% YoY. These robust results have further supported the upward momentum in their share prices.

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Source: PR Times
Category: News
Organizations: AAOI / Lumentum / Coherent

AAOI's Strong Earnings Spark Surge in Silicon Photonics Group, Driving Multiple Stocks to Halt-Up

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