Analysts Set Applied Optoelectronics, Inc. (NASDAQ:AAOI) PT at $52.80

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have received a consensus rating of “Hold” from the seven brokerages that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, three have given a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $52.80.

A number of research analysts have commented on the stock. B. Riley Financial raised shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 target price on the stock in a research report on Friday, February 27th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $50.00 price target on shares of Applied Optoelectronics in a research report on Thursday, February 19th. Northland Securities reiterated a “market perform” rating and set a $55.00 price objective on shares of Applied Optoelectronics in a research note on Friday, February 27th. Needham & Company LLC lifted their price objective on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the company a “buy” rating in a report on Friday, February 27th. Finally, Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th.

Insiders Place Their Bets

In related news, Director Cynthia Delaney sold 21,000 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $98.02, for a total transaction of $2,058,420.00. Following the sale, the director owned 116,222 shares of the company’s stock, valued at $11,392,080.44. This trade represents a 15.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Elizabeth G. Loboa sold 102,347 shares of Applied Optoelectronics stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $95.76, for a total value of $9,800,748.72. Following the completion of the transaction, the director owned 20,523 shares in the company, valued at $1,965,282.48. This trade represents a 83.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 309,833 shares of company stock worth $26,991,062. Insiders own 4.50% of the company’s stock.

Institutional Trading of Applied Optoelectronics

Several hedge funds have recently modified their holdings of AAOI. Allworth Financial LP raised its stake in shares of Applied Optoelectronics by 1,923.7% during the 4th quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 731 shares in the last quarter. Comerica Bank purchased a new stake in Applied Optoelectronics during the third quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. boosted its stake in Applied Optoelectronics by 166.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 750 shares in the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in Applied Optoelectronics in the second quarter valued at approximately $49,000. Finally, Kohmann Bosshard Financial Services LLC purchased a new position in Applied Optoelectronics in the fourth quarter worth $55,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

Key Applied Optoelectronics News

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: Company announced major AI/data‑center wins including a reported 1.6T transceiver program (management commentary suggests the program could exceed ~$200M across the 2026 ramp), supporting expectations for substantial revenue growth from hyperscaler customers. Applied Optoelectronics Soars 7.3% on Unveiling of Next-Gen AI Products
• Positive Sentiment: Product progress: AOI showcased a 25 dBm ultra‑high‑power ELSFP at OFC 2026—evidence of product readiness for next‑gen AI/co‑packaged optics deployments, which helps the company compete for silicon‑photonic supply chains. AOI Showcases 25dBm ELSFP at OFC
• Positive Sentiment: Near‑term revenue diversification: analysts flag stronger CATV demand (1.8 GHz amplifiers) with Q1 outlook pointing to sequential growth, providing a non‑AI revenue tailwind. Will Strong Demand for 1.8 GHz Amplifiers Boost AAOI’s CATV Growth?
• Neutral Sentiment: Reported short‑interest statistics show “0 shares” and a 0.0 days‑to‑cover metric — likely data errors. Short‑interest signals are inconclusive for near‑term positioning.
• Neutral Sentiment: Coverage/valuation pieces are proliferating (both bullish and cautious views). These amplify intraday moves and volatility but don’t by themselves change the underlying order/execution story. A Look At Applied Optoelectronics Valuation After New AI Data Center Networking Showcases
• Negative Sentiment: Insider sale: Director/executive Hung‑Lun (Fred) Chang sold 36,400 shares at ~$100.25 on March 16 (~$3.65M), reducing his stake ~13.5% — a visible distribution event that can weigh on sentiment. Insider Sale Filing — Hung-Lun (Fred) Chang
• Negative Sentiment: Dilution concerns remain after an at‑the‑market (ATM) program disclosure (up to $250M) and investor commentary tying past pullbacks to ATM/dilution risk — this can cap rallies until capital‑use is clarified. AAOI slides as investors weigh dilution risk
• Negative Sentiment: Market has shown sharp intraday reactions (including a reported ~28% drop linked to timing/interpretation of the 1.6T order), underscoring execution and timing risk for order fulfillment and revenue recognition. AAOI Down After Securing Major 1.6T AI Transceiver Order

Applied Optoelectronics Price Performance

Shares of AAOI stock opened at $101.92 on Tuesday. Applied Optoelectronics has a twelve month low of $9.71 and a twelve month high of $128.96. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.18. The stock has a fifty day simple moving average of $60.25 and a two-hundred day simple moving average of $40.22. The stock has a market capitalization of $7.66 billion, a price-to-earnings ratio of -156.80 and a beta of 3.20.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, February 26th. The semiconductor company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.12) by $0.11. The firm had revenue of $134.27 million for the quarter, compared to analyst estimates of $131.56 million. Applied Optoelectronics had a negative return on equity of 5.29% and a negative net margin of 8.39%.The business’s revenue for the quarter was up 33.9% on a year-over-year basis. During the same quarter last year, the firm posted ($0.02) earnings per share. Applied Optoelectronics has set its Q1 2026 guidance at -0.090-0.000 EPS. On average, analysts predict that Applied Optoelectronics will post -1.18 EPS for the current fiscal year.

Applied Optoelectronics Company Profile

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.