Applied Optoelectronics (AAOI) Stock Price, News & Analysis

Company Overview

Applied Optoelectronics, Inc. develops and manufactures high-speed fiber-optic networking products designed to support the growing bandwidth demands of data centers, telecommunications carriers and internet content providers. The company’s core offerings include pluggable optical transceiver modules, transponders and optical components that enable data transmission at rates ranging from 1G to 400G. These products are used to facilitate long-haul, metro and intra-data center connectivity, addressing the need for scalable, low-latency and energy-efficient solutions in modern network infrastructures.

The company’s product portfolio spans small-form factor pluggable modules such as SFP+, QSFP+ and QSFP28 units, as well as more advanced form factors like CFP2 and OSFP for ultra-high-speed applications. Applied Optoelectronics also produces optical components—including lasers, detectors and integrated coherent assemblies—that are incorporated into both its own modules and those of third-party original equipment manufacturers. This vertically integrated approach allows AAOI to maintain control over key components, optimize performance and manage costs.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics has established manufacturing and research facilities in the United States and mainland China to support global supply and product development. The company conducts sales and technical support activities across North America, Europe, Asia-Pacific and other key markets, serving leading cloud service operators, telecom carriers and enterprise customers. Its strategic focus on innovation and manufacturing efficiency has enabled it to address shifting market requirements, including the recent transition to 400G and beyond.

Applied Optoelectronics is led by Dr. Chia-Chee Tsai, who serves as Chairman and Chief Executive Officer. Dr. Tsai co-founded the company and brings more than two decades of experience in optoelectronics design and production. Under his leadership, AAOI has expanded its research and development efforts, secured key customer relationships and pursued technology roadmaps that align with evolving network standards and industry demands.

Key Stats

• Today's Range: $166.66 to $182.46
• 50-Day Range: $84.59 to $223.10
• 52-Week Range: $15.06 to $233.67
• Volume: 10.25 million shs
• Average Volume: 11.93 million shs
• Market Capitalization: $14.56 billion
• P/E Ratio: N/A
• Dividend Yield: N/A
• Price Target: $79.80
• Consensus Rating: Hold

Applied Optoelectronics Stock Analysis - MarketRank™

Applied Optoelectronics scored higher than 41% of companies evaluated by MarketBeat, and ranked 471st out of 626 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.9 / 5
• Analyst Rating: Hold

Consensus Rating

Applied Optoelectronics has received a consensus rating of Hold. The company's average rating score is 2.29, and is based on no strong buy ratings, 3 buy ratings, 3 hold ratings, and 1 sell rating.

Downside Risk

Applied Optoelectronics has a consensus price target of $79.80, representing about 56.0% downside from its current price of $181.49.

Amount of Analyst Coverage

Applied Optoelectronics has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 576.67%

Earnings Growth

Earnings for Applied Optoelectronics are expected to grow by 576.67% in the coming year, from $0.60 to $4.06 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Applied Optoelectronics is -274.98, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Applied Optoelectronics is -274.98, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Applied Optoelectronics has a P/B Ratio of 13.17. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

13.13% of the float of Applied Optoelectronics has been sold short.

Short Interest Ratio / Days to Cover

Applied Optoelectronics has a short interest ratio ("days to cover") of 1.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Applied Optoelectronics does not currently pay a dividend.

Dividend Growth

Applied Optoelectronics does not have a long track record of dividend growth.

News and Social Media

• Score: 2.7 / 5
• News Sentiment: 0.36

News Sentiment

Applied Optoelectronics has a news sentiment score of 0.36. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.52 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 23 news articles for Applied Optoelectronics this week, compared to 8 articles on an average week.

Search Interest

Only 167 people have searched for AAOI on MarketBeat in the last 30 days. This is a decrease of -10% compared to the previous 30 days.

MarketBeat Follows

56 people have added Applied Optoelectronics to their MarketBeat watchlist in the last 30 days. This is an increase of 133% compared to the previous 30 days.

Company Ownership

• Score: 1.6 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Applied Optoelectronics insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $59,068,951.00 in company stock.

Percentage Held by Insiders

3.80% of the stock of Applied Optoelectronics is held by insiders.

Percentage Held by Institutions

61.70% of the stock of Applied Optoelectronics is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Company Calendar

• Last Earnings: 5/07/2026
• Today: 5/25/2026
• Next Earnings (Estimated): 8/06/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: ELEC COMP - SEMIC
• Sub-Industry: Electronic Equipment
• Current Symbol: NASDAQ:AAOI
• CIK: 1158114
• Web: www.ao-inc.com
• Phone: (281) 295-1800
• Fax: N/A
• Employees: 4,691
• Year Founded: 1997

Price Target and Rating

• Average Price Target for Applied Optoelectronics: $79.80
• High Price Target: $160.00
• Low Price Target: $50.00
• Potential Upside/Downside: -56.0%
• Consensus Rating: Hold
• Rating Score (0-4): 2.29
• Research Coverage: 7 Analysts

Profitability

• EPS (Trailing Twelve Months): ($0.66)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: 302.48
• P/E Growth: N/A
• Net Income: -$38.23 million
• Net Margins: -8.55%
• Pretax Margin: -10.01%
• Return on Equity: -4.64%
• Return on Assets: -2.90%

Debt

• Debt-to-Equity Ratio: 0.18
• Current Ratio: 3.83
• Quick Ratio: 3.03

Sales & Book Value

• Annual Sales: $507 million
• Price / Sales: 28.72
• Cash Flow: $0.02 per share
• Price / Cash Flow: 7,285.24
• Book Value: $13.78 per share
• Price / Book: 13.17

Miscellaneous

• Outstanding Shares: 80,243,000
• Free Float: 77,194,000
• Market Cap: $14.56 billion
• Optionable: Optionable
• Beta: 3.76