Applied Optoelectronics, Inc.
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Range $178 – $190
Price Chart
About the company
Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions. Its extensive product catalog features optical modules, a range of laser components, subassemblies, transceivers, and complete turn-key systems.
- CEO
- Chih-Hsiang Lin
- IPO
- 2013
- Employees
- 4,691
- HQ
- Sugar Land, TX, US
AI snapshot
Six angles, distilled from the data.
AAOI remains in a powerful multi-month uptrend, trading well above its 200-day moving average of 94.99 and 50-day average of 133.94. The stock is still far below its 52-week high of 233.67, but the setup is constructive after a deep reset from the prior peak.
Street sentiment is constructive, with a Buy consensus and an average target of 184, above the current share price. Recent calls have been mixed at the margin—Raymond James lifted its target to 178 while Needham kept a Buy and set 190, signaling continued upside interest despite some target trimming.
The earnings backdrop is volatile but improving on the forward line. AAOI has beaten EPS in only 2 of the last 8 quarters, yet 2026 EPS estimates point to 1.03 versus a 2025 loss of 0.33 per share, so shareholders should watch whether revenue growth converts into cleaner margins.
Recent insider activity leans to net selling, with two discretionary sales from the CFO and a senior officer. The rest of the activity is award, in-kind, or other non-discretionary flow, which reads more like compensation mechanics than a conviction signal.
Profitability is still negative, but the top line is growing fast and the balance sheet is manageable. Gross margin is 28.9%, revenue growth is 86.4% year over year, and the company holds 216.0 million in cash against 167.3 million of debt for 48.7 million in net cash.
AAOI competes as a fiber-optic networking supplier to data centers, cable, telecom, and broadband customers, where scale and execution matter most. Versus the sector, it screens as a high-beta turnaround name rather than a steady compounder, with a negative trailing P/E and a premium growth profile.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $10.16B
- P/E
- -162.64
- Fwd P/E
- 122.59
- PEG
- -3.20
- P/S
- 17.05
- P/B
- 6.19
- EV/EBITDA
- -281.48
- Div Yield
- 0.00%
- Gross Margin
- 28.92%
- Op Margin
- -11.31%
- Net Margin
- -9.57%
- ROE
- -5.61%
- ROIC
- -3.15%
Latest fiscal year · YoY change
- Revenue
- $455.71M+82.8%
- Gross Profit
- $136.91M+121.5%
- Op Income
- $-54,602,000
- Net Income
- $-38,228,000+79.5%
- EPS
- $-0.64+85.8%
- OCF Growth
- -150.9%
- FCF Growth
- -213.1%
- 52W High
- $233.67
- 52W Low
- $18.50
- 50D MA
- $130.58
- 200D MA
- $96.49
- Beta
- 3.79
- RSI (14)
- 50
- Avg Volume
- 13.80M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Applied Optoelectronics posted another record-revenue quarter, kept Q1 in line with guidance, and raised its 2026 outlook on strong AI-driven data center demand and expanding capacity.· May 7, 2026
- Q1 revenue hit a record $151.1 million, up 51% year over year and 13% sequentially, with non-GAAP gross margin of 29.2% and non-GAAP loss per share of $0.07.
- Data center revenue jumped to $81.4 million, up 154% year over year, while CATV revenue was $66.8 million, up 4% year over year and above expectations.
- Management said 800G and 1.6T demand is outpacing capacity through mid-2027 and that production ramps in Texas should drive a larger step-up starting in Q3.
- The company raised 2026 guidance to more than $1.1 billion in revenue and more than $140 million in non-GAAP operating income.
- Q2 guidance calls for revenue of $180 million to $198 million, non-GAAP gross margin of 29% to 30%, and non-GAAP EPS of a loss of $0.03 to earnings of $0.03.
Applied Optoelectronics reported Q1 revenue of $151.1 million, up 51% year over year and 13% sequentially, with non-GAAP gross margin of 29.2% versus 30.7% in Q1 2025 and 31.4% in Q4 2025. Non-GAAP loss per share was $0.07, compared with a non-GAAP loss of $0.02 per share in Q1 of the prior year. Data center revenue was $81.4 million, up 154% year over year and 9% sequentially; CATV revenue was $66.8 million, up 4% year over year and 24% sequentially; telecom revenue was $2.6 million, down 13% year over year and 50% sequentially. Q2 revenue is expected to be $180 million to $198 million, with non-GAAP gross margin of 29% to 30% and non-GAAP EPS between a loss of $0.03 and earnings of $0.03. For 2026, management now expects revenue to exceed $1.1 billion and non-GAAP operating income to exceed $140 million.
Thompson Lin framed the quarter as validation that demand from AI infrastructure customers is accelerating, especially for 800G and 1.6T products. He emphasized that the company is deliberately expanding capacity in Texas, with meaningful revenue acceleration expected in the second half of the year as new facilities and equipment come online. His tone was confident and notably more upbeat on long-term demand than on near-term supply, repeatedly stressing that demand is above capacity and that the company is working to catch up.
Stefan Murry focused on execution against guidance, noting Q1 revenue of $151.1 million, gross margin of 29.2%, and non-GAAP EPS of a $0.07 loss all came in within the guided ranges. He highlighted $68.7 million of CapEx in Q1, cash and investments of $449.4 million, debt excluding convertible debt of $77 million, and inventory of $206.2 million, while saying CapEx should be even higher on a quarterly basis going forward. He also cited $1.4 million of direct tariff impact in Q1 and said the company expects at least $5.7 million back from an approved refund application.
Analysts focused heavily on capacity risk, the timing of 800G and 1.6T ramps, and whether the company can execute its aggressive factory buildout. Management said the biggest risk is timing of equipment and qualification, but argued that the work is lower risk because it is an extension of processes already deployed in Asia, with limited labor risk due to automation. On the ELSFP and laser business, management said it is working with several customers on long-term agreements and sees industry-wide indium phosphide shortages persisting, but believes its in-house laser capability and expanded Texas footprint will be a competitive advantage.
The bull case is that Applied Optoelectronics is seeing strong customer pull for 800G, 1.6T, and CATV products while capacity is still the binding constraint, not demand. Management described a clear second-half ramp, added Texas footprint, and rising confidence in margin expansion as mix shifts toward higher-speed data center products and in-house lasers scale.
The main bear case is execution risk: management repeatedly said revenue is constrained by manufacturing capacity, equipment qualification, substrate supply, and customer audits, all of which can delay shipments. Gross margin is still below the company’s long-term target of around 40%, and management acknowledged Q1 and Q2 ramp-up can pressure efficiency before the new lines are fully tuned.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 94.6%
- Shares Outstanding
- 80.24M
- Float Shares
- 75.88M
of shares held by institutions
426 13F filers
Buy/sell ratio 0.04. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 6.45M | ▼ 742.06K |
| Vanguard Group Inc | 4.98M | ▲ 358.09K |
| Invesco Ltd. | 3.41M | ▲ 1.40M |
| Vanguard Capital Management LLC | 3.36M | ▲ 301.48K |
| Marex Group PLC | 2.83M | ▲ 2.54M |
| Ubs Group AG | 2.11M | ▲ 1.14M |
| Oberweis Asset Management Inc/ | 1.79M | ▼ 558.84K |
| Geode Capital Management, LLC | 1.67M | ▲ 49.63K |
| Value Aligned Research Advisors, LLC | 1.60M | ▲ 327.19K |
| Goldman Sachs Group Inc | 1.59M | ▲ 501.69K |
| State Street Corp | 1.50M | ▼ 146.68K |
| Hood River Capital Management LLC | 1.39M | ▲ 116.99K |
Held by 264 ETFs
Biggest fund positions in AAOI by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 10, 26 | Murry Stefan J. | sell | 4,000 |
| Jul 31, 26 | Lin Chih-Hsiang (Thompson) | other | 9,251 |
| Aug 4, 26 | Yeh Shu-Hua (Joshua) | sell | 4,715 |
| Jul 22, 26 | Kuo David C | other | 1,869 |
| Jul 22, 26 | Kuo David C | other | 472 |
| Jul 22, 26 | Kuo David C | other | 516 |
| Jul 22, 26 | Kuo David C | other | 407 |
| Jul 22, 26 | Murry Stefan J. | other | 2,971 |
| Jul 22, 26 | Murry Stefan J. | other | 679 |
| Jul 22, 26 | Murry Stefan J. | other | 988 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our AAOI coverage
Recent articles, reports, and earnings notes.

AAOI's 15% stealth rally is front-running the 800G capacity unlock
AAOI's 800G and 1.6T expansion gives its rally a tangible production catalyst, not just another AI narrative. The valuation is demanding, but the capacity unlock can justify the momentum if management converts demand into profitable growth.

Applied Optoelectronics still looks early, not overdone
AAOI’s latest move looks tied to a real product cycle, not just another AI trade with no receipts. The combination of 82.8% revenue growth, a first volume 1.6T order, and management’s Q2-to-Q3 ramp language says this run still looks early.

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Want a deeper read on AAOI?
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Applied Optoelectronics: Why The Recent Weakness Looks Like An Opportunity
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Bank of America Corp DE Has $20.38 Million Position in Applied Optoelectronics, Inc. $AAOI
defenseworld.net · Aug 19
Applied Optoelectronics, Inc. (AAOI) Presents at Rosenblatt's 6th Annual Technology Summit: The Age of AI (Part II) Transcript
seekingalpha.com · Aug 18
Applied Optoelectronics Bets on U.S. Laser Capacity to Capture AI Data Center Demand
marketbeat.com · Aug 18
Applied Optoelectronics Inc (AAOI) Stock Up 3.1% but GF Value Says Overvalued -- GF Score: 59/100
gurufocus.com · Aug 17
Applied Optoelectronics: 170% Growth At Just 4x Sales Is Too Cheap To Ignore
seekingalpha.com · Aug 17
The Optical Shift: Why AAOI is Built for the AI Boom
zacks.com · Aug 14
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
AI analysis · Last refreshed August 17, 2026 · Live quote · Not investment advice