Applied Optoelectronics (NASDAQ: AAOI) has completed a previously announced $600 million at-the-market equity offering program, raising approximately $588 million in net proceeds. The optical component manufacturer sold 5,694,845 common shares at an average price of $105.36 per share. The offering, first disclosed on August 21, represents the company's third ATM equity program completed this year.
The new capital arrives as AOI scales manufacturing for 800G and 1.6T optical transceivers targeting hyperscale and AI data center networks. AOI said proceeds may be used for general corporate purposes including debt repayment, working capital and capital expenditures, with manufacturing expansion for data center optical devices identified as a primary focus. CEO Dr. Thompson Lin said the company plans investments in new production and R&D; equipment as it expands advanced manufacturing capacity.
AOI's manufacturing buildout is already substantial. In July, the company began developing nearly 400,000 additional square feet of manufacturing capacity at two properties in Pearland, Texas, focused on 800G and 1.6T transceivers. Earlier this year, AOI also secured a volume order exceeding $200 million for 1.6T transceivers from a major hyperscale customer. The company has been expanding capacity in both Texas and Taiwan as AI clusters drive higher optical bandwidth requirements.
The $588 million infusion gives AOI substantially more financial capacity to execute its manufacturing roadmap. What remains unknown is how quickly the company can translate those investments into qualified production capacity and shipments as hyperscalers migrate toward 800G and 1.6T connectivity.