Applied Optoelectronics (AAOI) shares climbed 7.8% on May 21, 2026. The stock reached $178.12 during morning trading. This rebound follows a 22% multi-week correction from its May 13 peak. The gains occurred while the S&P 500 and Nasdaq indices traded in the red.
Rosenblatt raised its price target for the stock to $220. The firm cited strong demand for Amazon-related 800G technology and long-term revenue prospects. Raymond James also increased its price target to $160.
Investors remain optimistic about capacity expansion in Taiwan and Texas. These facilities will support surging demand for AI infrastructure.