u/alwaysmoney2

AAOI - The Chokepoint To $525-$700

AAOI is a vertically integrated optical supplier positioned at a critical bottleneck in AI infrastructure—the optical interconnect layer between silicon and power. With hyperscalers spending $725B+ capex in 2026 and the optical transceiver market reaching $26B, AAOI's $1.1-$1.5B demand is supply-constrained rather than demand-constrained, suggesting significant room for revenue growth and margin expansion as production capacity scales.