AAOI
TechnologyApplied Optoelectronics, Inc. · Semiconductors · $15B
What is Applied Optoelectronics, Inc.?
Applied Optoelectronics designs and manufactures fiber-optic networking products sold to data center operators, cable TV equipment makers, and internet service providers worldwide.
The company generates revenue by supplying optical modules, lasers, transceivers, and related fiber-optic components. Its customers span internet data centers, telecom equipment manufacturers, and ISPs, reached through both direct and indirect sales channels.
Incorporated in 1997 and headquartered in Sugar Land, Texas.
- Optical modules and transceivers
- Fiber-optic lasers and subassemblies
- Headend, node, and distribution equipment
Is AAOI a Good Stock to Buy?
UQS Score rates AAOI as Below Average overall.
Growth stands out as the clearest bright spot in AAOI's profile, reflecting meaningful top-line momentum in a demand-driven fiber-optic market. Valuation also registers as Good, suggesting the stock is not obviously expensive relative to its fundamentals.
Both Quality and Moat score as Weak, pointing to structural challenges around profitability consistency and competitive differentiation.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does AAOI pay dividends?
No — Applied Optoelectronics, Inc. does not currently pay a dividend.
AAOI does not currently pay a dividend. Companies at this stage of the fiber-optic hardware cycle typically reinvest available capital into manufacturing capacity and product development rather than returning cash to shareholders.
When does AAOI report earnings?
Applied Optoelectronics reports earnings on a quarterly cadence, consistent with standard US-listed equity practice.
Revenue trends have shown meaningful improvement, driven by rising demand from data center customers. Profitability, however, remains an area to watch given the company's Weak Quality pillar rating.
For the most recent quarter's results, visit Applied Optoelectronics' investor relations page directly.
AAOI Price History
+1729.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Applied Optoelectronics, Inc.?
Based on Applied Optoelectronics, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
Frequently Asked Questions
What does Applied Optoelectronics do?
Applied Optoelectronics designs and manufactures fiber-optic networking products — including optical modules, lasers, and transceivers — sold to data center operators, cable TV equipment makers, and internet service providers around the world.
Does AAOI pay dividends?
No, AAOI does not currently pay a dividend. The company appears to prioritize reinvesting resources into its product lines and manufacturing operations rather than distributing cash to shareholders.
When does AAOI report earnings?
Applied Optoelectronics follows a standard quarterly reporting schedule. For confirmed dates, check the company's investor relations page, as our data source does not cover specific upcoming earnings dates.
Is AAOI a good stock to buy?
UQS Score rates AAOI as Below Average overall. Growth and Valuation are relative strengths, but Weak scores in Quality and Moat highlight meaningful risks. The full pillar breakdown is available to Pro members.
Is AAOI overvalued?
AAOI's Valuation pillar scores as Good within the UQS framework, suggesting the stock does not appear expensive on a relative basis. However, valuation alone does not determine overall quality — see the complete analysis for context.
What is AAOI's market cap bracket?
AAOI is classified as a large-cap company within the UQS Score framework.
Is AAOI a long-term quality investment?
As a long-term quality indicator, AAOI's Below Average UQS Score reflects concerns — particularly around Moat and Quality — that matter over extended holding periods. Strong Growth is a positive signal, but durability of that growth is the key question.
What sector does AAOI belong to?
Applied Optoelectronics operates in the Technology sector, specifically within fiber-optic networking hardware — a segment closely tied to data center infrastructure buildout and broadband expansion.
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Pro Analysis
AAOI — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 40.1 | 3.3 | 18.0 | 91.7 | 47.1 | 62.7 | -0.1 |
| May 22, 2026 | 40.2 | 3.3 | 18.0 | 91.7 | 47.1 | 63.1 | -0.2 |
| May 21, 2026 | 40.4 | 3.3 | 18.0 | 91.7 | 47.1 | 64.4 | +0.1 |
| May 20, 2026 | 40.3 | 3.3 | 18.0 | 91.7 | 47.1 | 63.7 | 0.0 |
| May 19, 2026 | 40.3 | 3.3 | 18.0 | 91.7 | 47.1 | 63.5 | +0.3 |
| May 16, 2026 | 40.0 | 3.3 | 18.0 | 91.7 | 47.1 | 61.9 | +0.1 |
| May 15, 2026 | 39.9 | 3.3 | 18.0 | 91.7 | 47.1 | 60.8 | +0.2 |
| May 14, 2026 | 39.7 | 3.3 | 18.0 | 91.7 | 47.1 | 59.5 | -0.2 |
| May 13, 2026 | 39.9 | 3.3 | 18.0 | 91.7 | 47.1 | 61.2 | -0.1 |
| May 12, 2026 | 40.0 | 3.3 | 18.0 | 91.7 | 47.1 | 61.5 | -0.5 |
AAOI — Pillar Breakdown
Quality
— 3.3/100 (25%)Applied Optoelectronics, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 91.7/100 (20%)Applied Optoelectronics, Inc. is growing rapidly with strong revenue and earnings expansion.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 47.1/100 (15%)Applied Optoelectronics, Inc. has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 62.7/100 (15%)Applied Optoelectronics, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Moat
— 18/100 (25%)Applied Optoelectronics, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for AAOI.
Score Composition
Financial Data
More Stock Analysis
How is the AAOI UQS Score Calculated?
The UQS (Unified Quality Score) for Applied Optoelectronics, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Applied Optoelectronics, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Applied Optoelectronics, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.