Applied Optoelectronics, Inc. AAOI
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Updated: 16 Sep 2026
Base analysis: 21 Jul 2026
The news check keeps the assessment current.
General analysis — not personal advice.
NEUTRAL
Partly clear
Existing position may be maintained pending confirmation of margin improvement and volume deliveries.
Strong revenue growth and AI order book are weighed against ongoing GAAP losses, margin pressure and dilution risk, supporting a neutral signal.
Market sentiment
Positive ↓
Trend: Declining
The market continues to show optimism around AI demand but the tone has softened after the report due to margin concerns and insider sales.
Risk assessment
High
Dilution:
High
History of equity raises and Amazon warrants create ongoing dilution.
Jurisdiction:
Medium
Significant manufacturing in Taiwan and China despite new US facility.
Execution:
High
Need to scale 1.6T production without eroding margins.
Cash flow:
4 mo
NEUTRAL is the call. Positive is the market mood. High risk means a lot can go wrong.
Latest change
- 27 Aug 2026 — Report shows strong 800G volume growth but lower margins than expected, triggering share drop after ATM announcement.
About the company
Applied Optoelectronics develops and manufactures optical transceivers and laser components for datacenters, CATV and telecom. The company is vertically integrated with in-house laser production and focuses on 800G/1.6T products for AI infrastructure.
Sector:
Optical communication and datacenter transceivers
Type:
Tech
Next report (Q3)
5 Nov 2026
Catalysts
Q4 2026
Texas capacity target
High
Bull case
Strong data center growth and Texas capacity expansion drive revenues and volumes through 2026.
Bear case
Still unprofitable with margin pressure, high customer concentration and dilution risk from issuances and warrants.
Why this signal
Strong revenue growth and AI order book are weighed against ongoing GAAP losses, margin pressure and dilution risk, supporting a neutral signal.
Recent news
- The company has signed 10-year lease agreements for new manufacturing and warehouse facilities in Houston (totaling approximately 1.1 million square feet) and a factory in Ningbo, China. The agreements include purchase options and rent-free renovation periods. Insider sales have continued and the stock has shown volatility around 95–105 USD.
Key figures
Revenue
Q2 2026
USD 192M
Revenue TTM
TTM
USD 507M
EBITDA
Q1 2026
USD 1.0M
Net income
Q2 2026
USD -22.8M
Cash
Q1 2026
USD 449M
Total debt
Q1 2026
USD 280M
Gross margin
Q2 2026
27.7%
Shares outstanding
Q1 2026
80.2M
EPS
Q2 2026
USD -0.28
Exchange
NASDAQ
Type
Technology
Sector
Optical communication and datacenter transceivers
Firelda provides general information and analysis, not personal investment advice. Content does not consider your financial situation or goals. Investments can rise and fall in value. Always do your own research.