B
Bull
Bull · 25%AAOI
$30.66
Scenario price
$75.570
-7.368 (-9.75%)At close
Loading chart…
- High
- 83.440
- Open
- 83.310
- VWAP
- 78.15
- Volume
- 14.15M
- Mkt Cap
- 331.50M
- Low
- 75.430
- Amount
- 1.11B
- EV/EBITDA, TTM
- -22.32
Applied Optoelectronics, Inc. is a developer and manufacturer of advanced optical and hybrid fiber coaxial (HFC) networking products that are the building blocks for artificial intelligence (AI) datacenters, Cable TV Broadband (CATV) and broadband fiber access networks around the world. The Company supplies this critical infrastructure to tier-one customers across cloud computing, CATV broadband, telecom, and fiber-to-the-home (FTTH) markets. It designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. In the CATV market, it supplies a broad array of products, including lasers, transmitters and transceivers, and turn-key equipment. It supplies optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. In the telecom market, it supplies lasers and laser subassemblies.
AI analysis of Applied Optoelectronics, Inc. (AAOI)
SellGiven the current price of $75.57 and an RSI of 19.33, which indicates the stock is oversold, it may seem like a buying opportunity. However, the stock has experienced a significant decline of 64.2% from its 52-week high and a 31.07% drop over the past 5 days, reflecting severe market concerns about AI spending. Additionally, the forward P/E ratio is 84.03, suggesting the stock is overvalued relative to its earnings potential. The main risk is the negative sentiment surrounding AI infrastructure spending, which could further impact profitability.
Analyst Ratings (9)
-49.38% Downside
Buy
6 Buy
1 Hold
2 Sell
Current: 75.57
Low
15.00
Average
38.25
High
50.00
Raymond James
Outperform
$178
2026-08-11
Raymond James
2026-08-11
Price Target
$178
Outperform
Northland
Market Perform
$120
2026-08-07
Northland
2026-08-07
Price Target
$120
Market Perform
Needham
Buy
$190
2026-08-07
Needham
2026-08-07
Price Target
$190
Buy
B. Riley
Neutral
$109
2026-08-07
B. Riley
2026-08-07
Price Target
$109
Neutral
Rosenblatt
Buy
$220
2026-05-08
Rosenblatt
2026-05-08
Price Target
$220
Buy
Valuation Metrics
The current forward P/E ratio for Applied Optoelectronics, Inc. (AAOI) is 84.03, compared to its 5-year average forward P/E of 31.64.
Alphio AI Price Scenarios for AAOI
Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.
Whales holding AAOI
Events Timeline
News
9.510-15PRnewswireApplied Optoelectronics to Release Q3 Financial Results
2.010-16FoolApplied Optoelectronics Shares Plunge 64.2% Amid AI Spending Concerns
2.010-13stocktwitsOptical Networking Stocks Decline Amid AI Funding Concerns
2.010-12CNBCMemory Stocks Slide, eBay Soars on Upgrade
7.510-09stocktwitsLumentum Anticipates Significant Supply Shortfalls Through 2028
AAOI FAQ — answered by Alphio AI
Applied Optoelectronics, Inc. is a developer and manufacturer of advanced optical and hybrid fiber coaxial (HFC) networking products that are the building blocks for artificial intelligence (AI) datacenters, Cable TV Broadband (CATV) and broadband fiber access networks around the world. The Company supplies this critical infrastructure to tier-one customers across cloud computing, CATV broadband, telecom, and fiber-to-the-home (FTTH) markets. It designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. In the CATV market, it supplies a broad array of products, including lasers, transmitters and transceivers, and turn-key equipment. It supplies optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. In the telecom market, it supplies lasers and laser subassemblies. It operates in the Technology sector (SEMICONDUCTORS & RELATED DEVICES industry).
Given the current price of $75.57 and an RSI of 19.33, which indicates the stock is oversold, it may seem like a buying opportunity. However, the stock has experienced a significant decline of 64.2% from its 52-week high and a 31.07% drop over the past 5 days, reflecting severe market concerns about AI spending. Additionally, the forward P/E ratio is 84.03, suggesting the stock is overvalued relative to its earnings potential. The main risk is the negative sentiment surrounding AI infrastructure spending, which could further impact profitability.
9 analysts cover AAOI: 6 rate it Buy, 1 Hold and 2 Sell. The average price target is 38.25.
Community
More ↗
Quant Trading Weekly Journal Week 11 | 2026-10-17 | Weekly equity: 2,287.32 This has definitely been the toughest week since I started live quant trading, and it really left me battered. I run a U.S. semiconductor RWA quant strategy, and this week the Philadelphia Semiconductor Index fell for five consecutive trading days. SOXL dropped 40% in a single week, small caps like CBRS and AAOI also fell more than 30%, and MUU was no exception, so this week I was holding losses across the board. This is when risk control really gets tested. Painful as it was, I just barely held through, and I am not especially panicked right now because I still have extra funds to add to positions. I just put in 1,000u today as margin, and if next week still does not improve I will add more. As long as I am in, the positions are in. I have realized that trading is above all a practice-first matter. When you have not held through losses, no amount of talk about risk management and position sizing is useful; only the market shows what is real. If I get through this wave, I will definitely reduce semiconductor exposure. I originally planned to use position management to hedge the risk of too-high semiconductor correlation, but I found it did not really work, so I still need to add lower-correlation instruments. #QuantJournal #LiveTradingRecordAndMindsetSharing
Show more
$AAOI is testing its supporting trendline and the psychological $100 level. The GEX Heatmap shows the King Node at $120 for this week. A move back toward the DMAs is likely this week.
Show more
$AAOI Sitting right on the 105 support, yet open interest dropped 10 points 🤯 Fewer people but price didn't collapse—that's a shakeout, not a trend change. 66% longs still holding, funding rate running hot. If it can't be pushed down, that's strength—this move favors the longs. 😏
Show more
This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.