Advanced Optoelectronics Stock Rises on Positive CPO Business Outlook

The stock price of Advanced Optoelectronics (3362) experienced significant volatility on Friday, ultimately closing higher following positive developments in its Co-Packaged Optics (CPO) business. The company's chairman, Kao Wei-ya, announced that its V-groove product, crucial for CPO applications, is slated for sample submission in August and is expected to enter mass production next year.

This upcoming production is projected to be a major revenue driver, with Kao estimating that the CPO business will account for 30% of the company's total revenue by next year. While acknowledging the substantial investment required for CPO equipment, which poses a challenge for this year's operations, Kao expressed optimism about the long-term prospects.

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V-groove product... expected to enter mass production next year, and will account for 30% of revenue.

Looking at the broader market, Advanced Optoelectronics faces headwinds in the laptop sector, as most clients have revised their forecasts downward by 10% to 20%. However, the company believes its strategic focus on mid-to-high-end products will help cushion the impact of this market slowdown.

Despite the stock's intraday fluctuations, with a high-low amplitude exceeding 6%, investor interest remained strong. The stock was trading up by 1.64% around 11:40 AM, with over 3,700 shares changing hands. Notably, foreign investors sold 140 shares, and institutional investors sold a net of 145 shares on the previous day, while day trading activity represented 57% of the turnover, indicating a dynamic trading environment.

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Most clients have revised their forecasts downward by 10% to 20%, but Advanced Optoelectronics mainly supplies mid-to-high-end products, so the impact is relatively small.