Applied Optoelectronics (NASDAQ:AAOI) is expanding its automated U.S. manufacturing capabilities to capitalize on growing demand for AI data centers and co-packaged optics, according to CFO and CSO Stefan Murry. The company aims to increase its transceiver capacity from over 200,000 units per month to 650,000 by year-end, with larger contributions from its Houston production expected in 2027–2028. Murry noted that customers are willing to pay a premium for U.S. production due to geopolitical risks and supply chain concerns, and the company expects near-term gross margins of 32%–33%, targeting approximately 40% by the end of 2027.