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AAOI 
Applied Opt (AAOI)
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Upturn Advisory Summary
11/10/2025: AAOI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
5 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $28.6
1 Year Target Price $28.6
| 2 | Strong Buy |
| 2 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 262.7% | Avg. Invested days 30 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 11/10/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.95B USD | Price to earnings Ratio - | 1Y Target Price 28.6 |
Price to earnings Ratio - | 1Y Target Price 28.6 | ||
Volume (30-day avg) 5 | Beta 3.22 | 52 Weeks Range 9.71 - 44.50 | Updated Date 11/9/2025 |
52 Weeks Range 9.71 - 44.50 | Updated Date 11/9/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -3.46 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-11-06 | When - | Estimate -0.0132 | Actual -0.09 |
Profitability
Profit Margin -36.97% | Operating Margin (TTM) -15.33% |
Management Effectiveness
Return on Assets (TTM) -4.46% | Return on Equity (TTM) -40.43% |
Valuation
Trailing PE - | Forward PE 84.03 | Enterprise Value 1891182611 | Price to Sales(TTM) 4.63 |
Enterprise Value 1891182611 | Price to Sales(TTM) 4.63 | ||
Enterprise Value to Revenue 5.14 | Enterprise Value to EBITDA -19.35 | Shares Outstanding 68278417 | Shares Floating 65079573 |
Shares Outstanding 68278417 | Shares Floating 65079573 | ||
Percent Insiders 4.41 | Percent Institutions 51.91 |
Upturn AI SWOT
Applied Opt
Company Overview
History and Background
Applied Optoelectronics, Inc. (AOI) was founded in 1997. It initially focused on developing and manufacturing laser diodes and has since expanded to a broad range of optical components, modules, and equipment for various networking applications. The company has grown organically and through acquisitions to become a key player in the optical networking industry.
Core Business Areas
- Data Center: AOI provides optical transceivers used in data centers for connecting servers, switches, and other networking equipment. These transceivers enable high-speed data transmission and are crucial for data center performance.
- Telecom: AOI offers optical components and modules for telecom infrastructure, including those used in fiber optic networks for long-distance communication. These products support the increasing bandwidth demands of telecom operators.
- CATV: AOI supplies lasers and modules for cable television (CATV) networks, enabling the delivery of high-speed internet and video services to residential and business customers.
- FTTH: AOI offers optical components and modules for Fiber To The Home (FTTH) deployment to support internet expansion.
Leadership and Structure
AOI is led by Dr. Thompson Lin (Founder, Chairman, and CEO). The company has a typical corporate structure with departments for engineering, manufacturing, sales, marketing, finance, and operations.
Top Products and Market Share
Key Offerings
- 100G/200G/400G Transceivers: AOI is a supplier of high-speed optical transceivers used in data centers. Market share data varies, but AOI is considered a significant player. Competitors include: Lumentum (LITE), Coherent (COHR), Infinera (INFN), and Broadcom (AVGO). Estimates vary based on specific product segments and customer base.
- CATV Lasers: AOI provides lasers for CATV networks, enabling high-bandwidth delivery. Competitors include: II-VI Incorporated (COHR), and Broadcom (AVGO). Market share is not publicly available in a consolidated manner.
Market Dynamics
Industry Overview
The optical networking industry is driven by increasing bandwidth demands from data centers, telecom operators, and cable providers. Technological advancements are enabling higher data rates and lower costs, driving further adoption. The market is competitive, with ongoing innovation and consolidation.
Positioning
AOI is positioned as a supplier of high-performance optical components and modules, focusing on key markets such as data centers and telecom. Its competitive advantages include its vertically integrated manufacturing and engineering capabilities.
Total Addressable Market (TAM)
The global optical transceiver market is projected to reach billions of dollars in the coming years. AOI aims to capture a significant portion of this TAM by offering competitive products and expanding its customer base. AOI is well positioned in the TAM.
Upturn SWOT Analysis
Strengths
- Vertically integrated manufacturing
- Strong engineering expertise
- Established customer relationships
- Diverse product portfolio
Weaknesses
- Customer concentration risk
- Exposure to cyclical industry trends
- Price competition
Opportunities
- Growing demand for high-speed transceivers in data centers
- Expansion of 5G networks
- Increased adoption of fiber optic technology
Threats
- Intense competition
- Technological obsolescence
- Economic downturn
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- LITE
- COHR
- INFN
- AVGO
Competitive Landscape
AOI's advantages include its vertically integrated manufacturing, which allows for cost control and faster time-to-market. Disadvantages include customer concentration and smaller scale compared to larger competitors.
Major Acquisitions
Fabrinet
- Year: 2007
- Acquisition Price (USD millions): 24
- Strategic Rationale: Expanded manufacturing capacity and geographical reach.
Growth Trajectory and Initiatives
Historical Growth: AOI's growth has been driven by increasing demand for its products in data centers and telecom networks. However, it has experienced volatility due to market cycles and customer concentration.
Future Projections: Analyst projections vary, but generally expect continued growth in the optical networking market to drive AOI's revenue. Projections are subject to change based on market conditions.
Recent Initiatives: Recent initiatives include developing next-generation transceivers and expanding into new markets.
Summary
Applied Optoelectronics demonstrates expertise in optical components and modules, specifically in data centers, telecom, and CATV sectors. Their vertically integrated manufacturing enhances cost control, yet customer concentration poses a risk. To capitalize on market growth, AOI must mitigate competitive pressures and diversify its customer base. Recent strategic initiatives suggest a proactive approach to future opportunities.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Analyst Reports
- Industry Publications
- Company Website
Disclaimers:
This analysis is based on publicly available information and should not be considered investment advice. Market conditions can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Applied Opt
Exchange NASDAQ | Headquaters Sugar Land, TX, United States | ||
IPO Launch date 2013-09-26 | Founder, Chairman, President & CEO Dr. Chih-Hsiang Lin Ph.D. | ||
Sector Technology | Industry Communication Equipment | Full time employees 3309 | Website https://www.ao-inc.com |
Full time employees 3309 | Website https://www.ao-inc.com | ||
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
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