The sentiment for Applied Optoelectronics (AAOI) is bullish following a sell-off, as delays in Co-Packaged Optics (CPO) are expected to extend the runway for the company's profitable 800G and 1.6T pluggable modules. The company reports a massive backlog and recent orders exceeding $200M for 1.6T transceivers, with significant sequential growth expected from Q2 onwards. Analysts suggest the stock may course correct soon because the current business model relies on transceivers rather than the delayed CPO technology.