Applied Optoelectronics, Inc.

Fundamentals4.1
Price Action6.3
News Sentiment7.4
AI Rating
6.0

Key Drivers

  • Liquidity Up
  • Operating Burn
  • Rich Valuation

AI
AI Summary

6.0

AAOI has shifted from a speculative AI optics story to a high-stakes execution test, where real hyperscaler demand and 800G/1.6T capacity could drive meaningful upside, but heavy capex, negative cash flow, and customer concentration mean the premium valuation is only justified if management converts orders into profitable scale fast.

GrowthOpportunity
ExecutionRisk
AIInfrastructure‍

Price Chart

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Financial Metrics

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Revenue (TTM)
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Net Income (TTM)
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EPS (Q)
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MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

4.1

Key Financial Insights:

  • Liquidity Up
  • Operating Burn
  • Rich Valuation

AAOI's liquidity and leverage improved sharply on financing-driven cash buildup, but persistent operating losses, negative free cash flow, and a rich valuation keep the stock fundamentally pressured.

Liquidity
Profitability

Price Behavior

6.3
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Higher-lows trend
  • Sharp pullback
  • Support test

AAOI remains in a constructive medium-term uptrend, but the 14.7% two-day pullback from $223.10 to $190.36 means bulls need to hold the $185-$190 support zone and reclaim $203.57 to keep the last month's breakout intact.

bullish
pullback
Support Level: $185-$190
Resistance Level: $203.57-$223.10

A sharp 14.7% drop in two days from $223.10 to $190.36 suggests profit-taking after a strong run

Sentiment & News

7.4

Key News Insights:

  • AI Demand
  • Texas Expansion
  • Earnings Volatility

AAOI's headlines point to strong AI-optics demand and capacity expansion, but earnings misses and volatile post-results trading keep the outlook mixed.

AIDemand
CapacityBuild

AI infrastructure momentum and new manufacturing capacity are supportive for AAOI, but near-term sentiment remains constrained by losses and execution risk