It will add nearly 400,000 square feet of capacity for its 800G and 1.6T optical transceivers. This news comes during a positive trading session for the broader market, with the Technology sector gaining 0.81% and the S&P 500 up 0.3%. • Applied Optoelectronics stock is showing exceptional strength. What’s fueling AAOI momentum?Expands Pearland Manufacturing For 800G And 1.6T OpticsThe expansion aims to enhance production capabilities for critical components used in AI infrastructures, which are essential for fast, long-distance data transmission. This strategic move is expected to strengthen Applied Optoelectronics’ position in the competitive optical networking market.Dr. Stefan Murry, chief financial officer and chief strategy officer of AOI said, “These facilities will be instrumental in supporting our long-term growth strategy, enabling us to expand production of advanced optical transceivers and strengthen AOI’s position as a key supplier to the AI and cloud infrastructure markets.”AAOI Technical Outlook: Key Support, Resistance and MomentumCurrently, the stock is trading at $119.37, significantly above its 52-week low of $18.50 but still 15.6% below its 20-day simple moving average (SMA) of $140.73. The moving average convergence divergence (MACD) is below its signal line, indicating that upside momentum is fading unless the stock can reclaim that baseline.