Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber optic networking products globally. The company is headquartered in Sugar Land, Texas.
| Revenue (TTM) | $595.97M |
| Gross Profit (TTM) | $172.33M |
| EBITDA | $-32.11M |
| Operating Margin | -12.90% |
| Return on Equity | -5.45% |
| Return on Assets | -2.72% |
| Revenue/Share (TTM) | $8.18 |
| Book Value | $19.77 |
| Price-to-Book | 5.11 |
| Price-to-Sales (TTM) | 15.03 |
| EV/Revenue | 13.96 |
| EV/EBITDA | 38.41 |
| Quarterly Earnings Growth (YoY) | 0.00% |
| Quarterly Revenue Growth (YoY) | 86.40% |
| Shares Outstanding | $84.91M |
| Float | $80.56M |
| % Insiders | 9.82% |
| % Institutions | 62.24% |
Volatility is currently contracting
Applied Optoelectronics plunges 46.3% in three months as supply constraints and a rich valuation offset surging AI-driven demand for 800G and 1.6T products.
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Applied Optoelectronics 800G revenues surge more than tenfold year over year as demand outpaces supply and capacity expansion targets further growth through mid-2027.
Applied Optoelectronics is positioned to benefit from the data center industry's shift to high-bandwidth optical transceivers, driven by AI infrastructure demand. I initiate AAOI with a 'Strong Buy' rating, citing robust demand, aggressive capacity expansion, and a roadmap aligned with 800G/1.6T/3.2T industry transitions. AAOI's valuation is compelling, with price-to-sales multiples compressing rapidly as revenue ramps, though heavy dilution from equity issuance is a key risk.
Applied Optoelectronics (NASDAQ:AAOI) stock is down 12% to $109.94 early Monday after the company disclosed a plan to raise $600 million through an at-the-market equity offering.
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I reiterate Applied Optoelectronics as a Buy with a revised $228 price target, reflecting 87% upside from the current price of $122. Q2 2026 results confirmed a rapid revenue ramp, with 800G and 1.6T product cycles driving significant upside to previous growth assumptions. Management now expects Q4 2026 total revenue to exceed $500 million, implying a 2027 annualized run rate above $2 billion.
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