When n-cladding and p-cladding layer are graded, and the aluminum (Al) content is increased to 85% in a single quantum well separate confinement heterostructure laser diode, the result is improved optoelectronic performance. The output power is increased to 45 mW by using graded cladding layers. In addition, the lasing threshold current density is also lowered, which results in a significant optical gain. The stimulated emission rate also improves due to improved electron-hole recombination and thus resulting in improved lasing.