Applied Optoelectronics, Inc. (AAOI) Stock Analysis
Range Bound setup
Technology · Communication Equipment
Sell if holding. Engine safety override at $164.50: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10. Specifically: High short interest: 13%; Below-average business quality; Rich valuation.
Applied Optoelectronics (AOI) is a vertically integrated fiber-optic networking products company targeting internet data centers (42.9%), CATV (53.8%), telecom, and FTTH markets, with all laser chips manufactured domestically in Sugar Land, Texas. Revenue of $455.7M in 2025 is... Read more
Sell if holding. Engine safety override at $164.50: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10. Specifically: High short interest: 13%; Below-average business quality; Rich valuation. Chart setup: RSI 50 mid-range, Bollinger mid-band. Score 4.5/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Applied Optoelectronics, Inc.
Latest news
- Rocket Lab, Tower Semiconductor, And Palo Alto Are Among Top 10 Large-Cap Gainers Last Week (May 11-May 15): Are the Oth — benzinga May 17, 2026 neutral
- Market-Moving News for May 15th — benzinga May 15, 2026 neutral
- $100 Invested In Applied Optoelectronics 10 Years Ago Would Be Worth This Much Today — benzinga May 14, 2026 positive
- Applied Optoelectronics Entered Into Equity Distribution Agreement To Sell Up To $600M In Common Stock Through Raymond J — benzinga May 14, 2026 negative
- Bloom Energy, SanDisk Are Powering A MEME ETF Surge That Tripled Nasdaq 100 Returns — benzinga May 14, 2026 positive
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
5 floor-breakers·1 ceiling hit
Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $164.50: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10. Specifically: High short interest: 13%; Below-average business quality; Rich valuation. Chart setup: RSI 50 mid-range, Bollinger mid-band. Prior stop was $153.69. Score 4.5/10, moderate confidence.
Take-profit target: $229.00 (+38.6% upside). Prior stop was $153.69. Stop-loss: $153.69.
Target reached (-20.3% upside); Quality below floor (2.5 < 4.0).
Applied Optoelectronics, Inc. trades at a P/E of N/A (forward 35.9). TrendMatrix value score: 3.2/10. Verdict: Sell.
13 analysts cover AAOI with a consensus score of 3.8/5. Average price target: $151.
What does Applied Optoelectronics, Inc. do?Applied Optoelectronics (AOI) is a vertically integrated fiber-optic networking products company targeting internet...
Applied Optoelectronics (AOI) is a vertically integrated fiber-optic networking products company targeting internet data centers (42.9%), CATV (53.8%), telecom, and FTTH markets, with all laser chips manufactured domestically in Sugar Land, Texas. Revenue of $455.7M in 2025 is heavily concentrated in two customers; Digicomm and Microsoft together represented 81.9% of 2025 revenue.