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Applied Optoelectronics (AAOI)

Information Technology · optical networking equipment · NASDAQ

Applied Optoelectronics is a developer and manufacturer of advanced optical components and modules designed for high-speed fiber-optic data transmission in data centers and broadband networks.

What Applied Optoelectronics does

Applied Optoelectronics, Inc. is a leading provider of fiber-optic networking products, primarily serving the data center, telecommunications, and cable broadband industries. The company designs and manufactures optical components, sub-assemblies, and finished modules, including transceivers and lasers, to support high-speed data transmission.

Themes: optical communications, data center infrastructure, broadband access, fiber optics

Fundamentals

  • Price$77.32 as of 2026-10-21 close
  • Market cap$6.5B as of 2026-08-03 (share count; price 2026-10-21)
  • 1-year return+131.5% 2025-10-21 close $33.40 → 2026-10-21 close $77.32
  • P/En/a negative earnings
  • Net margin-8.4% FY2025, SEC XBRL
  • Gross margin+30.0% FY2025, SEC XBRL
  • ROE-5.2% FY2025, SEC XBRL
  • ROICn/a No figure: its pre-tax income was zero or negative, so there is no tax rate to apply.
  • Debt / equity0.04 borrowings, leases excluded / equity — 10-Q/10-K balance sheet 2026-06-30
  • Revenue growth (YoY)+82.8% FY2025, SEC XBRL
  • Revenue CAGR (3y)+26.9% SEC XBRL
  • Beta3.89 as of 2026-09-03
  • Last reported earnings2026-08-06 SEC EDGAR Form 8-K (Item 2.02)

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How AAOI compares in its sector

  • net profit marginmiddle range 379 covered Information Technology peers, as of 2026-09-03
  • operating marginbottom 25% 374 covered Information Technology peers, as of 2026-09-03
  • gross marginbottom 25% 310 covered Information Technology peers, as of 2026-09-03
  • return on equitymiddle range 369 covered Information Technology peers, as of 2026-09-03
  • 3-year revenue CAGRtop 25% 383 covered Information Technology peers
  • free cash flow (absolute dollars, latest fiscal year)bottom 10% 380 covered Information Technology peers, as of FY2025

Position among covered Information Technology companies that report each metric (minimum 5 peers). A relative position within our covered catalog — not a valuation, quality, or investment judgment. A higher percentile is simply a higher value (for P/E, more expensive on earnings — never "better"). Informational only.

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Top 10 scores & list membership

AAOI is not currently in any published Top 10 list. Its scores are below.

Top 10 score

42.3 #998 of 1,265 scored · #142 of 191 in Information Technology

  • Profitability9.9
  • Growth92.7
  • Financial health50.2
  • Valuation44.0
  • Capital return9.5
  • Trend33.6

Growth 93rd (revenue growth year over year 82.8%, 3-year revenue CAGR 26.9%) and financial health 50th (debt to equity 0, free cash flow margin -77.6%); weakest is capital return (10th, net share count bought back over the year -44.9, consecutive years of dividend increases 0 years).

Scores as of 20 Oct 2026. Each bar is a percentile: how this company ranked against every company the score ranked, 0–100. A list is a published formula and its output, not a recommendation. Method version 4.

Quarterly results

QuarterRevenueGross profitOperating incomeNet incomeDiluted EPSOperating cash flowCapex
Q2 FY2026 2026-06-30$192M$53M-$25M-$23M-$0.28$12M†—
Q1 FY2026 2026-03-31$151M$44M-$13M-$14M-$0.19-$85M$58M
Q4 FY2025 2025-12-31$134M†$42M†-$12M†-$2M†$0.00†-$30M†$75M†
Q3 FY2025 2025-09-30$119M$33M-$18M-$18M-$0.28-$28M†$50M†
Q2 FY2025 2025-06-30$103M$31M-$16M-$9M-$0.16-$65M†$25M†
Q1 FY2025 2025-03-31$100M$31M-$9M-$9M-$0.18-$51M$28M
Q4 FY2024 2024-12-31$100M†$29M†-$6M†-$120M†-$2.82†-$25M†$28M†
Q3 FY2024 2024-09-30$65M$16M-$17M-$18M-$0.42-$14M†$6M†

† Not filed as a discrete quarter: derived from the company's own year-to-date figures (for example the fourth quarter as the fiscal year minus the first nine months). A derived per-share figure is approximate, because the share count moves within the year.

Balance sheet at 2026-06-30

  • Cash and equivalents$500M
  • Total debt$59M borrowings only; leases excluded
  • Net debt-$441M total debt − cash − short-term investments

From the company's own SEC 10-Q and 10-K filings (XBRL), re-read every week. Figures in US dollars as filed; informational only — not financial advice.

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How Applied Optoelectronics looks technically

Applied Optoelectronics (AAOI) is trading 31.1% below its 200-day average, the long-term trend line — a long-term downtrend. Its 50-day average crossed below its 200-day average about 2 trading days ago — a "death cross", a bearish long-term signal. A trend is forming but not yet strong — ADX, a 0–100 trend-strength gauge, is 22 (a reading of 25+ marks a strong trend). Momentum is neutral — its 14-day RSI (a 0–100 momentum gauge) is 34, neither overbought (above 70) nor oversold (below 30). MACD, a trend-momentum gauge, turned bearish about 6 trading days ago (its momentum flipped negative). It made a new 20-day low about 3 trading days ago. It is 67.2% below its highest point of the past year.

Trend

7
Distance from the 200-dayit is trading 31.1% below its 200-day average, the long-term trend line — a long-term downtrend-31.1%
50-day moving averageits average price over the last 50 trading days — a short-term trend line — is $108.72$108.72
200-day moving averageits average price over the last 200 trading days — the long-term trend line — is $111.31$111.31
Swing structureits recent peaks and dips disagree — one of them is rising while the other is not, so there is no clean up or down pattern in the swingsmixed — one of the two is not confirming
Last swing turnits last significant turn was a swing high 14 calendar days ago — the swings before that are what the structure reading is measured on14 sessions
Since the 50/200 crossits 50-day average crossed below its 200-day average about 2 trading days ago — a "death cross", a bearish long-term signal2 sessions
Trend strength (14-day ADX)a trend is forming but not yet strong — ADX, a 0–100 trend-strength gauge, is 22 (a reading of 25+ marks a strong trend)21.9

Momentum

3
14-day RSImomentum is neutral — its 14-day RSI (a 0–100 momentum gauge) is 34, neither overbought (above 70) nor oversold (below 30)34.3
Position in its 14-day rangeit is trading near the bottom of its 14-day range ($73.05 to $131.15) — its "stochastic" reading is 6 out of 100, where 0 would mean closing exactly at the 14-session low and 100 exactly at the high. This measures WHERE the price sits inside its recent range, which is a different question from the RSI beside it: RSI is a momentum gauge, measuring how FAST the price has been moving, so a stock can drift quietly to the bottom of its range with an ordinary RSI, or fall sharply and still sit in the middle. It has been climbing within that range over the last few sessions.6.4
Since the MACD crossed zeroMACD, a trend-momentum gauge, turned bearish about 6 trading days ago (its momentum flipped negative)6 sessions

Range

12
52-week highits highest closing price over the past year (about 252 trading days) was $233.67$233.67
From the 52-week highit is 67.2% below its 52-week high (its highest price of the past year)-67.2%
Above the 52-week lowit is 314.8% above its 52-week low (its lowest price of the past year)+314.8%
Below the 52-week highit is 67.2% below its highest point of the past year67.2%
Since a 20-day breakoutit made a new 20-day low about 3 trading days ago3 sessions
Since a 55-day breakoutit made a new 55-day low about 3 trading days ago3 sessions
All-time highits highest closing price on record is $233.67 (set on 2026-05-13)$233.67
Given back of the 52-week moveover the past year its closes ranged ($19.49 to $223.10), and it has given back well over two thirds of its rise from last year’s low — 72% of it. Chart-watchers call 61.8%-65% given back the "golden pocket" — for this company that is $90.75 to $97.27. It is watched widely enough that orders cluster there, which is the honest reason it matters; it is not a forecast.71.9%
From the all-time highit is 67.2% below its all-time high-67.2%
Nearest price levelit is trading 22.2% below a resistance level at $93.81 — a price it turned at twice since 2026-09-16, most recently on 2026-09-28. Since 2024-10-21 it has 8 such levels below the current price and 4 above. Levels like these describe where the price has reversed or paused before; they are not a forecast of where it will go.+22.2%
All-time lowits lowest closing price on record is $1.48 (set on 2022-07-13)$1.48
Above the all-time lowit is 5085.1% above its all-time low+5,085%

Volatility

5
Band width vs its own 6 monthsday-to-day price swings are wider than usual versus its own recent 6-month history (wider than about 79% of it)79th percentile
Typical daily rangein a typical session it travels about $8.91 between its high and its low — about 11.6% of its price. That is its "average true range" over the last 14 sessions, which also counts the distance from the previous close, so a day that opens well away from yesterday counts as the large move it was$8.91
Bollinger bands (20-day, ±2σ)most of its recent trading has stayed between about $70.97 and $130.22 — the "Bollinger bands", a range drawn two standard deviations either side of its 20-day average price, which widens when the stock gets more volatile and narrows when it settles$70.97 – $100.59 – $130.22
Typical daily range (% of price)its price moves about 11.6% in a typical session — among the most volatile in the catalog. This is the average gap between a session's high and low over the last 14 sessions, counting overnight moves, expressed against the current price so it can be compared with companies trading at any price11.6%
Stretch from the 200-day averageit is trading 3.9 daily ranges below its 200-day average price (31.1% below it in plain percentage terms) — a way of asking how far it has stretched from its own average in units of how far it normally moves in a day, so a calm company and a jumpy one can be compared on the same scale3.9 daily ranges below its 200-day average

Volume

1
Volume vs its 30-day averagetrading volume is about normal versus its 30-day average0.90×

Analyst

2
Change in the average price targetanalysts have cut their average price target by 2.1% since the prior reading-2.1%
Change in the consensus ratingnot available for this company yetn/a

Candlestick patterns

1
Since a doji5 sessions ago it opened and closed at almost the same price after trading through a wider range — a "doji", the classic picture of buyers and sellers finishing the session level5 sessions ago

Price gaps

3
Gap at the openit opened on 2026-10-20 4.3% below the previous session's close — an overnight gap, the part of the move that happened while the market was shut, and traded back through that level before the close-4.3%
Open gapit gapped 6.2% below the previous close 3 sessions ago and has not traded back through the level it left behind at 86.22 — an "unfilled gap", which describes a price range no trade has since crossed and is not a forecast that it will be crossed-6.2%
Gap filleda 4.3% gap down opened on 2026-10-20 has been "filled" today — price traded back through the level the gap left behind, and it closed again during the very session that opened ittoday

Price streaks

1
Closing streakit closed lower in its latest session, after a session that did not close lower — a single down day rather than a run1 session down

Relative strength

4
vs market, 1 monthover the past 1 month this stock lagged the market by 28.0 percentage points (the stock lost 27.0% while the market gained 1.0%)-28.0%
vs market, 3 monthsover the past 3 months this stock lagged the market by 29.1 percentage points (the stock lost 25.5% while the market gained 3.6%)-29.1%
vs market, 6 monthsover the past 6 months this stock lagged the market by 61.6 percentage points (the stock lost 53.1% while the market gained 8.5%)-61.6%
vs market, 12 monthsover the past 12 months this stock beat the market by 110.2 percentage points (the stock gained 124.8% while the market gained 14.6%)+110.2%

Signal agreement

2
Bullish technical signals1 of the 9 technical signals we can compute for it is currently in a bullish state: near the bottom of its 14-day range (oversold) — these describe past price behaviour, not a forecast1 of 9
Bearish technical signals6 of the 9 technical signals we can compute for it are currently in a bearish state: a "death cross" — its 50-day average is below its 200-day, trading below its 200-day average, a fresh 20-day low, MACD momentum is negative, lagging the market over 6 months, trading below the Ichimoku cloud — these describe past price behaviour, not a forecast6 of 9

Trend (Ichimoku cloud)

1
Vs the Ichimoku cloudtrading 35% below the Ichimoku cloud — a band drawn from where its own highs and lows sat up to 2026-09-14 and projected forward over today's price, the side traders read as an established downtrend, with the band above acting as the level that would have to be cleared. The band itself is thin, spanning 1.6% of the share price, which is taken to mean a barrier that gives way easily.-34.6%

Volume-weighted price

2
Vs this year’s average price paidthe price is 37% below the average price paid so far this year, so the typical buyer over that stretch is under water. That average is $121.64 — a volume-weighted average of daily closes over 199 sessions, not a true tick-by-tick VWAP.-36.9%
Vs the average paid since it last reportedthe price is 32% below the average price paid since it last reported on 2026-08-06 (its 10-Q), so the typical buyer over that stretch is under water. That average is $112.56 — a volume-weighted average of daily closes over 53 sessions, not a true tick-by-tick VWAP.-31.8%

Price levels it has turned at before

AAOI last closed at $76.74 on 2026-10-20. Since 2024-10-21 it has turned at 8 prices below its last close and 4 above; the 3 nearest below and the 3 nearest above are listed, nearest first.

LevelSideDistanceEvidence
$93.81Resistance22.2% above the last closeturned there twice · 2026-09-16 to 2026-09-28
$41.25Support46.3% below the last closeturned there three times · 2024-12-26 to 2026-02-17
$37.03Support51.7% below the last closeturned there twice · 2025-12-11 to 2026-02-05
$35.32Support54.0% below the last closeturned there twice · 2025-01-21 to 2025-10-10
$128.66Resistance67.7% above the last closeturned there twice · 2026-03-11 to 2026-07-14
$131.89Resistance71.9% above the last closeturned there twice · 2026-04-23 to 2026-10-06

A level is a price this company reversed or paused at more than once — they describe past behaviour, not a forecast of where the price will go.

Wave structure

No Elliott-wave labelling currently fits its swings: the recent highs and lows do not satisfy the three rules a five-wave count has to obey, so there is no count to show rather than a count we are unsure about.

Read from daily closes as of 2026-10-20.

An Elliott-wave count describes the swings already printed and the level that would disprove it. It is not a forecast, a target, or advice.

Based on daily closing prices as of 2026-10-20. Describes past price behavior only — informational, not financial advice.

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Analyst consensus

  • Consensus ratingBuy (2.33 mean, 1=Strong Buy…5=Strong Sell) — 5 analysts
  • Mean price target$160.00 range $92.00 – $220.00; median $178.00

Analyst estimates, as of 2026-10-16. These are third-party analyst opinions and price targets, aggregated — not a recommendation, prediction, or advice from stocks-llm. Informational only.

Analyst EPS estimate for AAOI

  • Consensus EPS estimate$0.1433 next reporting period, as of 2026-10-16
  • Estimate change, 30 days$0.00 (0.0%) from $0.1433, on 2026-09-16, 30-day window
  • Readings revised upward0% of 11 comparable readings

The consensus estimate for the next reporting period, and how it has moved between readings of that SAME period. A change is measured only between readings estimating one period — when a company reports, the consensus moves to the next quarter and the two numbers are not comparable. Informational only, not a forecast and not advice.

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Key risks (from latest filing)

["history of operating losses and accumulated deficit","heavy reliance on a limited number of large customers in the data center and cable markets","intense competition in the optical components industry leading to pricing pressures"]

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What changed in the latest 10-Q

AI-assisted comparison of AAOI's 10-Q filed 2026-08-06 against the prior one filed 2026-05-07.

Management's Discussion & Analysis (MD&A)

  • Reworded:
    • In the newer filing (filed 2026-08-06), the sentence referencing the Quarterly Report period says "for the period ended June 30, 2026", while the older filing (filed 2026-05-07) says "for the period ended March 31, 2026".

Risk Factors

  • Added:
    • Newer filing adds mention of 'geopolitical tensions and conflicts, including with respect to international trade policies in areas such as tariffs and export controls, and the availability, timing and amount of refunds of previously paid tariffs' to the forward-looking statements caveat (filed 2026-08-06).
    • Newer filing replaces the end-market drivers paragraph with language stating bandwidth demand is 'fueled by the growth of artificial intelligence (AI), cloud computing, network-connected devices, video traffic, and online social networking' and adds discussion of AI workloads fueling retooling and construction of purpose-built data centers (filed 2026-08-06).
    • Newer filing adds 'greater' to the description of control over product quality and manufacturing costs in the vertically integrated manufacturing model paragraph (filed 2026-08-06).
    • Newer filing adds a sentence: 'We have recently announced plans to expand our manufacturing space in and around the Sugar Land, Texas area and are currently in the process of building out suitable facilities for this expansion. We expect the first of these new facilities to begin production later in 2026.' (filed 2026-08-06).
    • Newer filing adds a Trends and Other Matters Affecting Our Business paragraph about strong demand for data center products during the six months ended June 30, 2026 (filed 2026-08-06).
  • Removed:
    • Older filing's end-market drivers paragraph contained language about 'the increasing use of higher-capacity optical networking technology as a replacement for older, lower-speed optical interconnects, particularly as speeds reach 800 Gbps and above, as well as the movement to open internet data center architectures and the increasing use of in-house equipment design among leading internet companies' (filed 2026-05-07).
    • Older filing contained a Trends and Other Matters Affecting Our Business paragraph about recent developments in global trade policy, tariffs, export restrictions, and trade tensions between the United States and China and Taiwan (filed 2026-05-07).
  • Reworded:
    • The list of bandwidth demand drivers was reordered and modified: older filing listed 'network-connected devices, video traffic, cloud computing and online social networking'; newer filing lists 'artificial intelligence (AI), cloud computing, network-connected devices, video traffic, and online social networking' (filed 2026-05-07 vs 2026-08-06).
    • Punctuation changed: older filing used 'manufactures it and each facility' without comma while newer filing uses 'manufactures it, and each facility' (filed 2026-05-07 vs 2026-08-06).
    • The Trends and Other Matters Affecting Our Business section heading remained but its content changed from trade policy discussion to data center demand discussion (filed 2026-05-07 vs 2026-08-06).
  • Notes:
    • The newer filing text appears truncated at the end: 'At the same t'.
    • The older filing text also appears truncated at the end: 'and could result i'.
    • The comparison is limited to the provided excerpt of the Risk Factors section; the full Risk Factors sections may contain additional differences not captured here.

AI-assisted comparison of two SEC filing sections. It describes wording and theme changes only, makes no materiality, legal, or investment judgement, and is not financial advice. Informational only — not financial advice.

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Insider activity (SEC Form 4)

0 open-market purchases and 7 open-market sales by insiders in the last 90 days, of which we have read Form 4 filings through 2026-10-16. The 6 days since 2026-10-16 have not been checked yet.

  • Last 30 days · read to 2026-10-160 buys · 2 sells ($1M) — 2 selling insiders
  • Last 90 days · read to 2026-10-160 buys · 7 sells ($7M) — 3 selling insiders
  • Last 180 days · read to 2026-10-160 buys · 28 sells ($95M) — 7 selling insiders

Activity heuristic: net selling (a transparent product heuristic from the counts above, not a prediction or advice)

Most recent open-market transaction: 2026-10-12. Based on Form 4 filings read through 2026-10-16; anything filed since is not yet included.

View full insider trading history → View SEC Form 3/4/5 filings

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Only open-market purchases (SEC code P) and sales (code S) are counted here. Option exercises, vesting/awards, gifts, and shares withheld for taxes are excluded — they are compensation or mechanical, not open-market conviction. Sales may be planned and non-discretionary (e.g. a Rule 10b5-1 plan) and are not necessarily bearish; open-market buying is not a recommendation to buy. Informational only — not financial advice.

Institutional ownership (13F)

4 institutional 13F filers reported holding AAOI as of 2026-06-30 (quarter-end position, filed within 45 days).

  • Distinct 13F filers 4
  • Reported shares held 13,763,401
  • Reported value $2,039,189,493

reported quarterly holdings change (2026-03-31 → 2026-06-30): 0 new, 1 increased, 3 decreased, 2 exited. Change counts cover only managers that filed 13F reports in BOTH quarters, derived between two quarter-end snapshots — not same-day trades; a single manager is never said to have "bought" or "sold".

Institutional holdings are quarter-end long positions reported on SEC Form 13F-HR, filed up to 45 days after the quarter ends — they are delayed, are not real-time trades, exclude short positions and most non-US securities, and are not investment advice. Any increase/decrease is a reported change between two quarterly snapshots, not a same-day purchase or sale. These are quarter-end snapshots from the 13F filings on SEC EDGAR, filed within 45 days — not real-time, and any change is a difference between two quarterly reports, not a same-day trade. Informational only — not financial advice.

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Short interest (FINRA)

AAOI had 13,870,138 shares of reported short interest as of the 2026-09-30 FINRA settlement date (delayed, bi-monthly; not real-time).

AAOI had 16.4% of its shares outstanding sold short as of the 2026-09-30 FINRA settlement date (percent of FLOAT would be higher — float is not disclosed in the source). FINRA reported 1.96 days to cover at the same settlement.

  • Reported short interest (shares) 13,870,138
  • Short interest (% of shares outstanding) 16.4%
  • Prior settlement (shares) 12,307,146
  • Reported change 12.7%
  • Days to cover (reported) 1.96

Reported to FINRA as of the 2026-09-30 settlement date. Short interest is reported to FINRA and published on a delayed, bi-monthly schedule (as of a settlement date, disseminated roughly eight business days later) — it is NOT real-time, does not cover every venue or all US trading, and is not a short-squeeze prediction or investment advice. Days-to-cover is the value FINRA reports; percent of float is not shown because the source file carries no share-count denominator — where a percent appears it is of shares OUTSTANDING, the larger base, and is therefore a floor on percent of float. Informational only — not financial advice.

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Competitors & peers

AI-enriched competitor set. Linked names are companies covered by stocks-llm; other named peers are shown for reference only.

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Frequently asked questions

What does Applied Optoelectronics (AAOI) do?

Applied Optoelectronics, Inc. is a leading provider of fiber-optic networking products, primarily serving the data center, telecommunications, and cable broadband industries. The company designs and manufactures optical components, sub-assemblies, and finished modules, including transceivers and lasers, to support high-speed data transmission.

What sector is Applied Optoelectronics (AAOI) in?

Applied Optoelectronics (AAOI) is classified in the Information Technology sector. Its industry is optical networking equipment. It trades on NASDAQ.

Who are Applied Optoelectronics's (AAOI) competitors?

Notable peers of Applied Optoelectronics (AAOI) include Coherent, Lumentum Holdings, Finisar (now part of Coherent), Infinera and NeoPhotonics (now part of Lumentum). This peer set is informational only — not financial advice.

Is Applied Optoelectronics (AAOI) overbought or oversold right now?

Applied Optoelectronics (AAOI) is currently neither overbought nor oversold — its 14-day RSI (a 0–100 momentum gauge) is 34, in the neutral middle (as of 2026-10-20). RSI describes recent price momentum, not a forecast — informational only, not financial advice.

Where does stocks-llm's data on AAOI come from?

Fundamentals come from SEC XBRL company filings for the figures marked with a fiscal year, and market data, as of 2026-09-03 for the rest; prices are market data, as of 2026-09-03; company filings and profile facts come from SEC EDGAR. All figures are delayed daily-close data shown with their as-of date — informational only, not financial advice.

Fundamentals: SEC XBRL company filings for the figures marked with a fiscal year, and market data, as of 2026-09-03 for the rest. Filings: SEC EDGAR. Prices are delayed daily-close data.

Last updated 2026-10-21.

Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & market data, shown with their as-of date.