Shares of Applied Optoelectronics are surging more than 50% in premarket trading after the optical products maker said it had struck a deal with Amazon that gives the tech giant the right to buy almost 8 million shares of its stock.

Shares of Applied Optoelectronics Inc. (AAOI) skyrocketed over 47% during Thursday’s after-hours trade as the company announced the issue of a warrant to Amazon.com Inc. (AMZN) to purchase up to 7.945 million shares.

Applied Optoelectronics issued a stock warrant to Amazon allowing the purchase of 7.95 million shares at the price of $23.69 per share. See why AAOI stock is a Buy.