Key Points
- Insider sale: Hung‑Lun (Fred) Chang sold 36,400 shares at an average $100.25 on March 16 for about $3.65M, reducing his stake roughly 13.5% to 233,618 shares.
- Strong AI/data‑center demand: Management cites large AI/data‑center orders — including a reported 1.6T transceiver program that could exceed $200M across the 2026 ramp — and showcased a 25dBm ELSFP product aimed at next‑gen AI infrastructure.
- Mixed financials and risks: Revenue jumped 33.9% to $134.27M and EPS topped estimates, but Q1 guidance is weak (‑0.090 to 0.000 EPS), analysts are split with an average target of $52.80, and a $250M ATM offering raises dilution concerns.
Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) insider Hung-Lun (Fred) Chang sold 36,400 shares of the business's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $100.25, for a total transaction of $3,649,100.00. Following the completion of the sale, the insider owned 233,618 shares of the company's stock, valued at $23,420,204.50. The trade was a 13.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website.
Applied Optoelectronics Price Performance
NASDAQ AAOI opened at $92.63 on Thursday. Applied Optoelectronics, Inc. has a 1 year low of $9.71 and a 1 year high of $128.96. The company has a fifty day simple moving average of $58.88 and a 200 day simple moving average of $39.79. 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 company has a market cap of $6.97 billion, a P/E ratio of -142.51 and a beta of 3.20.
Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its earnings results on Thursday, February 26th. The semiconductor company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.12) by $0.11. Applied Optoelectronics had a negative net margin of 8.39% and a negative return on equity of 5.29%. The firm had revenue of $134.27 million for the quarter, compared to the consensus estimate of $131.56 million. During the same quarter last year, the firm posted ($0.02) EPS. The business's quarterly revenue was up 33.9% on a year-over-year basis. Applied Optoelectronics has set its Q1 2026 guidance at -0.090-0.000 EPS. On average, sell-side analysts predict that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.
Analysts Set New Price Targets
A number of analysts have issued reports on AAOI shares. Wall Street Zen raised Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, February 28th. Needham & Company LLC upped their price target on Applied Optoelectronics from $43.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, February 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. B. Riley Financial upgraded shares of Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $54.00 price objective on the stock in a research note on Friday, February 27th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $50.00 target price on shares of Applied Optoelectronics in a research report on Thursday, February 19th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $52.80.
Check Out Our Latest Analysis on Applied Optoelectronics
Key Applied Optoelectronics News
Here are the key news stories impacting Applied Optoelectronics this week:
- Positive Sentiment: Company has secured large AI/data‑center demand and long‑term volume orders (including a reported 1.6T transceiver program that management says could be >$200M across 2026 ramp), supporting upside expectations for revenue. Applied Optoelectronics Rises — NVIDIA's AI Data Centers
- Positive Sentiment: AOI showcased a 25dBm ultra‑high‑power ELSFP at OFC 2026, signaling product readiness for next‑gen AI infrastructure and reinforcing the company’s positioning in silicon‑photonic / co‑packaged optics supply chains. AOI Showcases 25dBm ELSFP at OFC
- Positive Sentiment: Analysts note rising CATV demand (1.8 GHz amplifiers) and a Q1 outlook that points to sequential revenue growth in that business line, adding a near‑term revenue tailwind beyond AI optics. Will Strong Demand for 1.8 GHz Amplifiers Boost AAOI's CATV Growth?
- Neutral Sentiment: Market reports on short‑interest show anomalous "0 shares" figures and a 0.0 days‑to‑cover metric — likely data errors, so short‑interest signals are inconclusive for near‑term trading. (March 17–18 filings)
- Neutral Sentiment: Coverage and media pieces note heavy institutional positioning and mixed analyst targets (buy and sell opinions), which can amplify intraday moves but do not change the underlying demand story. What's Going On With Applied Optoelectronics Stock?
- Negative Sentiment: Insider selling: Hung‑Lun (Fred) Chang sold 36,400 shares at an average $100.25 on March 16 (~$3.65M), reducing his stake ~13.5% — such sales can signal founder/executive liquidity needs and may pressure sentiment. Insider Sale Filing — Hung-Lun (Fred) Chang
- Negative Sentiment: Investors remain sensitive to dilution risk after the company filed an at‑the‑market (ATM) program (up to $250M), and commentary suggests recent pullbacks were driven by profit‑taking and ATM/dilution concerns. That risk can cap rallies until execution and capital‑use plans are clarified. AAOI slides as investors weigh dilution risk
- Negative Sentiment: Some outlets reported sharp intraday drops tied to the timing or market reaction to the 1.6T transceiver news, underscoring high volatility around order announcements and execution milestones. AAOI Down After Securing Major 1.6T AI Transceiver Order
Hedge Funds Weigh In On Applied Optoelectronics
Large investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Applied Optoelectronics by 10.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company's stock valued at $393,000 after purchasing an additional 2,415 shares during the period. ProShare Advisors LLC bought a new position in Applied Optoelectronics in the second quarter worth $283,000. PNC Financial Services Group Inc. boosted its stake in Applied Optoelectronics by 3,828.0% during the second quarter. PNC Financial Services Group Inc. now owns 8,838 shares of the semiconductor company's stock worth $227,000 after buying an additional 8,613 shares in the last quarter. Geode Capital Management LLC boosted its stake in Applied Optoelectronics by 18.8% during the second quarter. Geode Capital Management LLC now owns 1,285,693 shares of the semiconductor company's stock worth $33,034,000 after buying an additional 203,830 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey increased its holdings in Applied Optoelectronics by 38.1% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 12,225 shares of the semiconductor company's stock valued at $314,000 after buying an additional 3,372 shares during the period. Institutional investors and hedge funds own 61.70% of the company's stock.
Applied Optoelectronics Company Profile
(
Get Free Report)
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.
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