Optical component makers expand capacity for AI data centers

Optical component manufacturers are aggressively expanding capacity to meet the rising demand for AI data center infrastructure.

Applied Optoelectronics has launched an At-the-Market (ATM) program to raise up to $600 million. The company intends to use these funds to expand production of optical interconnect solutions, which are critical for maintaining high bandwidth and low latency between GPUs, memory systems, and switches in AI clusters.

Similarly, Chengdu-based Eoptolink Technology has increased its inventory value by 61% year-over-year to approximately $1.7 billion. This strategic buildup aims to secure critical components, such as specialized lasers and modulators, to ensure they can meet orders for high-speed 800G and 1.6T optical modules. Eoptolink reported significant growth, with first-half revenue nearly doubling and net income rising 91%, driven by orders from major clients including NVIDIA and AWS.