The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 9 | — | 20.8x | Bottom tier | |
Growth | 96 | 64.3% | 6.1% | Top tier | |
Quality | 20 | -13.4% | 6.6% | Bottom tier | |
Safety | 50 | 6.6x | 0.7x | Around median | |
Capital Return | 44 | — | 2.02% | Around median | |
Momentum | 81 | 555.1% | 4.1% | Top tier | |
Sentiment | 30 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Applied Optoelectronics, Inc., known by the ticker AAOI, is a leading designer and manufacturer of advanced fiber-optic products, primarily focusing on optical transceivers and lasers for data centers, broadband CATV networks, and fiber-to-the-home (FTTH) networks. The company is distinguished by its unique capability to manufacture Indium Phosphide (InP) lasers in-house, which provides a significant competitive advantage in supply chain control and avoiding global shortages. The company generates its revenue by selling these high-speed components to hyperscale cloud customers and major cable network providers.
During the first quarter of fiscal year 2026, the company achieved record revenues of $151.1 million, registering strong growth of 51% year-over-year and 13% quarter-over-quarter compared to the final quarter of 2025. Despite these record revenues, the company recorded a GAAP net loss of $14.3 million, or a loss of $0.19 per share, while GAAP gross profit reached approximately $43.9 million. On a non-GAAP basis, the gross margin was 29.2%, and the company recorded a net loss of $4.9 million ($0.07 per share).
The company's revenue during the first quarter was distributed with 54% in favor of data center products, which reached $81.4 million (a 154% increase year-over-year), while CATV products contributed 44% of revenue to reach $66.8 million (a 4% increase year-over-year). The remaining 2% came from other telecom and FTTH segments at $2.6 million. Within the data center segment, sales of 100G devices represented 41%, while 200G and 400G devices accounted for 46.7%, and emerging 800G devices contributed 5.6% of the segment's revenue, amounting to $4.6 million.
The market capitalization of Applied Optoelectronics, Inc. is approximately $14.8 billion. The analyst consensus currently indicates a 'Buy' recommendation with an average price target of $160 per share (which represents both the high and low target among analysts simultaneously). Given the stock's historical volatility within a 52-week range of $16.553 to $233.67, the stock moves continuously relative to this target, reflecting analyst optimism about the company's operational future.
Figures in the text are as of 2026-06-16; the live price is shown at the top of the page.
Company management expects full-year 2026 revenue to exceed $1.1 billion, representing an increase from the previous forecast of $1.0 billion. The company also expects to achieve non-GAAP operating income of over $140 million during the same year. This growth is driven by accelerating demand for artificial intelligence infrastructure and the expansion of production capacity.
The company has expanded its manufacturing footprint in Texas to approximately 900,000 square feet through property acquisitions and leases. This includes a new 210,000 square foot facility fully dedicated to the production of 800G and 1.6T transceivers, which is expected to begin initial production in the third quarter of 2026. The company expects about 30% of its total production for these categories to come from Texas by the end of 2026, rising to over 50% by the end of 2027.
The company completed its first massive commercial shipment of 800G single-mode transceivers to a major hyperscale cloud customer in the first quarter of 2026. Additionally, the company announced receiving its first massive commercial order for 1.6T transceivers from another major long-term customer, along with two new orders for 800G transceivers from the same customer. This customer is expected to return to representing more than 10% of the company's total revenue, with deliveries of 800G orders starting in the second quarter and 1.6T orders in the third quarter of 2026.
Automated analysis for informational purposes only — not investment advice.
The CATV segment achieved revenue of $66.8 million in the first quarter of 2026, up 4% year-over-year and 24% quarter-over-quarter, coming in at the high end of the company's expectations. This performance was mainly driven by volume shipments of 1.8 GHz amplifiers to the company's largest customer in this segment. The company expects second-quarter segment revenue to be between $75 million and $80 million, with a long-term outlook to achieve annual revenues exceeding $325 million from this segment.
Insider activity at Applied Optoelectronics showed a 'strong sell' signal over the past three months, with net sales totaling approximately $54.3 million. Fourteen sell transactions were recorded by company officers against zero purchases, with the last recorded transaction on June 10, 2026. These heavy sales have raised some concern among traders regarding potential stock dilution in the market.