AAOI
Applied Optoelectronics, Inc.

Applied Optoelectronics, Inc.AAOI

Technology · Communication Equipment
107.00USD
-1.54%
Sep 23, 2026
AAOI overview ready
Vertically Integrated Supplier of 800G and 1.6T Optical Modules for AI Networking
AAOI is a vertically integrated optical-networking component and module supplier.
Strong narrative exposure
Exposed to the AI Compute Infrastructure Buildout narrative through AI Networking and Optical Interconnect — component supplier.
Price trend is broken
Longer-term context reads extended trend, with a near-term setup of constructive pullback.
The tactical setup reads constructive pullback, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the growth it delivers per turn of revenue multiple.
Fundamentals under pressure
Ev / sales is weak.
Primary risk
High dependence on capital expenditure cycles in telecom and data center markets.
Market Sep 22Filing Jun 30Price action Sep 22Research Aug 28

Conviction Level

NarrativeHeat9.5ThemeHeat9.1PriceAction5.4Valuation0.9CompanyPosition9.3
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads extended trend, with a near-term setup of constructive pullback.
The tactical setup reads constructive pullback, but the weekly structure is broken.
EntryConstructive

Structure is constructive, but price remains well extended from the long-term weekly base and the earlier reset has already been partly recovered — a workable rather than ideal entry location.

Key Financials

Market Cap
$9.0B
Avg Volume (60D)
9.9M
60 sessions
Revenue Growth YoY
+82.8%
FY2025 vs FY2024
Gross Margin
+28.9%
Trailing twelve months
Operating Margin
-11.3%
Trailing twelve months
Free Cash Flow Yield
-6.5%
Distance from 200DMA
+1.0%
Next Earnings
2026-11-05
P/E
N/M
EV / Sales
14.4x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

All three valuation perspectives agree this company is expensive.
Applied Optoelectronics, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the growth it delivers per turn of revenue multiple.

What changed

  • CIEN Targets 30% Revenue Growth Through 2029 — Peers COHR, GLW And AAOI Rally After Guidance
    Dated 2026-09-16.
    2026-09-16 · source
  • APPLIED OPTOELECTRONICS, INC. — 8-K (items 1.01, 2.03, 9.01)
    Reported on 8-K, dated 2026-09-15.
    2026-09-15 · source
  • AAOI fell 9.1% in one session
    AAOI closed -9.1% while the broad market was close to flat (-0.5%).
    2026-09-14
  • APPLIED OPTOELECTRONICS, INC. — 8-K (items 1.01, 9.01)
    Reported on 8-K, dated 2026-09-10.
    2026-09-10 · source

Company Research

Thesis
AAOI is a vertically integrated optical-networking component and module supplier. Its data-center business manufactures lasers, optical subassemblies, and pluggable transceivers, with current commercialization centered on 800G and 1.6T products for hyperscale AI networking; it also retains meaningful CATV, telecom, and FTTH exposure.
Opportunity
High opportunity
Accelerator-cluster spending on high-bandwidth optical links, signal integrity and AI-fabric connectivity.
Key risk
High dependence on capital expenditure cycles in telecom and data center markets.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Networking and Optical Interconnect, with strong fit.
AAOI has direct revenue exposure to the bandwidth scaling of AI clusters rather than generic technology adjacency: its high-speed optical transceivers and underlying laser capability are used to connect switches and servers over fiber.
Narrative HeatHot9.5 / 10
Theme HeatHot9.1 / 10

Business & Markets

Technology · Communication Equipment
What they do

Applied Optoelectronics designs, manufactures, and sells fiber-optic networking products including optical modules and lasers, operating primarily in the US, Taiwan, and China through direct and indirect sales channels.

How it earns

The company generates revenue through transactional sales of hardware products to various communication equipment customers.

Products & services
Optical modules
Optical filters
Lasers
Laser components
Transmitters and transceivers
Fiber-optic networking equipment
Customers & end markets
Internet data center operators
Cable television providers
Telecom equipment manufacturers
Fiber-to-the-home providers
Internet service providers
Market position

Niche player with in-house laser fabrication capabilities in the small-cap transceiver market.

Demand drivers
Medium cyclicality

Demand depends on capital spending cycles in data centers and telecom infrastructure.

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