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Applied Optoelectronics, Inc. (AAOI) AI Forecast

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Applied Optoelectronics, Inc. (AAOI) Stock Forecast 2025


Applied Optoelectronics, Inc. (AAOI) AI Stock Price Forecast & Investment Analysis

Applied Optoelectronics, Inc. Stock Price Chart and Technical Analysis

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Applied Optoelectronics, Inc. (AAOI) - Comprehensive Stock Analysis & Investment Research

Deep dive into Applied Optoelectronics, Inc.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.

Analysis updated on March 3, 2026, 1:31 a.m. (UTC)

Applied Optoelectronics, Inc. Investment Summary

When evaluating whether Applied Optoelectronics, Inc. (AAOI) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.

Company Profile

Applied Optoelectronics, Inc. (AAOI) operates within the Manufacturing sector, specifically in the Semiconductors & Related Devices industry. The company employs approximately 275 people. With a market capitalization of $8 billion, the company is a mid-cap stock that typically offers a balance between growth potential and established business operations.

Financial Performance Analysis

Our comprehensive financial analysis covers Applied Optoelectronics, Inc.'s revenue, profitability metrics, balance sheet strength, and cash flow generation...

AI Price Predictions

Get AI-powered 7-day, 30-day and 90-day price forecasts for Applied Optoelectronics, Inc. along with confidence scores and detailed analysis...

Investment Considerations

Expert analysis of whether Applied Optoelectronics, Inc. is suitable for your investment objectives, risk tolerance, and time horizon...

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Corporate Identity

Applied Optoelectronics, Inc. (Stock Symbol: AAOI) is a prominent company operating within the Manufacturing sector, with a specific focus on the Semiconductors & Related Devices industry. The company's shares are publicly traded on the Nasdaq exchange.

Leadership & Workforce

Detailed information about Applied Optoelectronics, Inc.'s leadership team, workforce size, and organizational structure...

Market Classification

Market capitalization analysis and stock classification (mega-cap, large-cap, mid-cap, small-cap) for Applied Optoelectronics, Inc....

Sector & Industry Analysis

In-depth sector dynamics and industry context for Applied Optoelectronics, Inc....

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Revenue & Growth Analysis

Applied Optoelectronics, Inc. generates annual revenues of $455 million , representing an emerging company in its growth phase.

Profitability Metrics

Net profit margin, gross margin, and operating margin analysis for Applied Optoelectronics, Inc....

Market Valuation

P/E ratio, price-to-book, and valuation multiples for Applied Optoelectronics, Inc....

Return Metrics

Return on equity (ROE), return on assets (ROA), and capital efficiency for Applied Optoelectronics, Inc....

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Strategic Market Position

Applied Optoelectronics, Inc. strategically competes in the highly dynamic Semiconductors & Related Devices marketplace. As a mid-cap company, it occupies an attractive position balancing growth potential with established operations. Mid-caps often represent the 'sweet spot' for investors seeking companies that have proven their business models but still have meaningful runway for expansion. These companies are large enough to have competitive advantages but nimble enough to adapt quickly to market changes.

Industry Competitive Landscape

Applied Optoelectronics, Inc. competes within the Manufacturing sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.

Operational Efficiency

The company currently shows negative free cash flow of $-9 million , with year-over-year cash flow growth of -83.4%. Negative free cash flow may reflect heavy investment in growth, working capital needs, or operational challenges. This is common for high-growth companies investing aggressively but warrants attention for mature businesses.

Margin & Pricing Power Analysis

The company maintains a 26.4% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.

Operating margin of -26.5% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. Operating margin compression relative to gross margin suggests high operating expenses that may warrant efficiency improvements or reflect necessary growth investments.

Asset Utilization Efficiency

Asset turnover ratio of 0.46x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.

Financial Strength & Leverage

Current ratio of 1.66 indicates adequate liquidity to meet short-term obligations with reasonable cushion. This level balances working capital efficiency with financial safety.

Applied Optoelectronics, Inc. (AAOI) Fundamental Analysis & Insider Trading Data (Quarterly Financial Reports)

Comprehensive quarterly financial data, earnings trends, insider transactions, and institutional holdings for Applied Optoelectronics, Inc. stock analysis.

Deep dive into Applied Optoelectronics, Inc.'s financial health, valuation metrics, and operational efficiency to make informed investment decisions.

Understanding Valuation Metrics

What these metrics mean: Valuation metrics help determine if Applied Optoelectronics, Inc. stock is fairly priced compared to its earnings, assets, and market position.

How to read them: Lower P/E ratios may indicate undervalued stocks, while higher ratios suggest growth expectations. P/B ratio compares market value to book value.

For Applied Optoelectronics, Inc.: With a P/E ratio of -17.47, the market sees the stock as potentially undervalued.

P/E Ratio -17.47x
P/B Ratio 10.47x
Market Cap $7.69B
EPS $-3.57
Book Value/Share $9.79
Revenue/Share $6.08
FCF/Share $-2.55
Understanding Profitability Metrics

What these metrics mean: These ratios measure how efficiently Applied Optoelectronics, Inc. converts revenue into profit and generates returns for shareholders.

How to read them: Higher ROE/ROA indicate better management efficiency. Margin percentages show profit at different operational levels.

For Applied Optoelectronics, Inc.: An ROE of -21.1% indicates room for improvement in shareholder value creation.

ROE -21.1%
ROA -11.8%
ROIC -12.4%
Gross Margin 26.4%
Operating Margin -26.5%
Net Margin -32.3%
EBT Margin -25.5%
Tax Rate 12.5%
Understanding Financial Health Metrics

What these metrics mean: These ratios assess Applied Optoelectronics, Inc.'s ability to meet short-term obligations and manage debt levels effectively.

How to read them: Current ratio >2 is generally good, Quick ratio >1 shows strong liquidity. Lower D/E ratios indicate conservative debt management.

For Applied Optoelectronics, Inc.: A current ratio of 1.66 shows adequate liquidity.

Current Ratio 1.66x
Quick Ratio 0.75x
D/E Ratio 0.38x
Financial Leverage 1.86x
Interest Coverage -8.8x
Working Capital $106M
Understanding Cash Flow Metrics

What these metrics mean: Cash flow metrics reveal Applied Optoelectronics, Inc.'s ability to generate cash from operations and fund growth initiatives.

How to read them: Positive operating cash flow is crucial. Free cash flow shows money available for dividends, buybacks, or investments.

For Applied Optoelectronics, Inc.: Free cash flow of $-9M indicates cash challenges that need attention.

Free Cash Flow -$9M
Capital Spending -$9M
OCF Growth YoY -83.4%
FCF Growth YoY 96.0%
FCF/Sales -4.4%
CapEx/Sales 4.4%
Understanding Operational Efficiency Metrics

What these metrics mean: These ratios measure how effectively Applied Optoelectronics, Inc. uses its assets and manages working capital.

How to read them: Higher turnover ratios indicate efficient asset utilization. Shorter collection periods show effective credit management.

For Applied Optoelectronics, Inc.: An asset turnover of 0.46x suggests room for improvement in asset utilization.

Asset Turnover 0.46x
Receivables Turnover 4.2x
Inventory Turnover 1.8x
Fixed Assets Turnover 0.9x
Days Sales Outstanding 87 days
Days Inventory 203 days
Payables Period 68 days
Cash Conversion Cycle 222 days
Understanding Financial Statement Data

What these metrics mean: Key figures from Applied Optoelectronics, Inc.'s income statement and balance sheet showing absolute financial performance.

How to read them: Revenue shows business scale, while margins indicate profitability. Balance sheet items reveal financial structure.

For Applied Optoelectronics, Inc.: With annual revenue of $455M, Applied Optoelectronics, Inc. demonstrates solid business size.

Income Statement
Total Revenue $455M
R&D Expense $48M
SG&A Expense $25M
Cost of Goods Sold $155M
Balance Sheet Highlights (% Of Assets)
Total Current Assets 43%
Cash & Short-term Investments 7%
Total Liabilities 46%
Short-term Debt 14%
Accounts Receivable 12%
Inventory 21%
Dividend & Shareholder Information
Shares Outstanding 75M
Growth Metrics (YoY)
EPS Growth -7.8%

Latest Applied Optoelectronics, Inc. Stock News & Market Analysis

Breaking news, analyst reports, and market updates affecting Applied Optoelectronics, Inc. (AAOI) stock price and investment outlook.

📰 We are currently updating our news feed for Applied Optoelectronics, Inc.. Check back soon for the latest market analysis and company updates.

Applied Optoelectronics, Inc. Competitors & Peer Analysis - Manufacturing Sector

Comparative analysis of Applied Optoelectronics, Inc. against industry peers and competitors in the Manufacturing sector, featuring AI-powered forecasts and key financial metrics.

Company Ticker Symbol 90-Day AI Forecast Market Cap (USD M) P/E Ratio P/B Ratio
Applied Optoelectronics, Inc. AAOI ██% $7.69B -17.5x 10.5x
Analog Devices Inc ADI ██% $172.05B 63.6x 5.1x
Advantest Corp ADTTF ██% $26.13B x 0.2x
Arteris, Inc. AIP ██% $753M -10.4x 341.1x
Astera Labs, Inc. ALAB ██% $21.85B 99.7x 16.0x
Allegro Microsystems, Inc. ALGM ██% $6.81B 309.7x 7.1x
Aeluma, Inc. ALMU ██% $301M x 7.4x
Applied Materials Inc /De AMAT ██% $295.37B 37.7x 13.6x
Ambarella Inc AMBA ██% $3.05B -17.3x 5.2x
Advanced Micro Devices Inc AMD ██% $323.75B 74.7x 5.1x
Amkor Technology, Inc. AMKR ██% $12.00B 32.1x 2.7x
Alpha & Omega Semiconductor Ltd AOSL ██% $638M -88.3x 0.8x
Arm Holdings Plc /Uk ARM ██% $132.08B 164.9x 16.9x
Ascent Solar Technologies, Inc. ASTI ██% $51M -0.1x 19.2x
Ase Technology Holding Co., Ltd. ASX ██% $54.92B x x
Advantest Corp ATEYY ██% $122.06B x 0.9x
Atomera Inc ATOM ██% $170M -3.5x 9.2x
Broadcom Inc. AVGO ██% $1.51T 65.4x 60.6x
Axt Inc AXTI ██% $2.56B -7.3x 14.3x
Beam Global BEEM ██% $30M -2.9x 1.2x
Blaize Holdings, Inc. BZAI ██% $144M x 110.3x
Credo Technology Group Holding Ltd CRDO ██% $20.04B 94.6x 15.6x
Cirrus Logic, Inc. CRUS ██% $7.24B 17.9x 3.4x
Diodes Inc /Del/ DIOD ██% $3.13B 47.3x 1.7x
Daqo New Energy Corp. DQ ██% $1.62B x 0.8x
Enphase Energy, Inc. ENPH ██% $5.54B 32.2x 5.1x
Formfactor Inc FORM ██% $7.68B 141.2x 7.4x
First Solar, Inc. FSLR ██% $21.47B 14.1x 2.3x
Ftc Solar, Inc. FTCI ██% $108M -8.3x 12.0x
Gct Semiconductor Holding, Inc. GCTS ██% $62M x 3048.1x
Globalfoundries Inc. GFS ██% $26.43B x x
Gsi Technology Inc GSIT ██% $295M -4.5x 3.5x
Guerrilla Rf, Inc. GUER ██% $21M x 8.7x
Himax Technologies, Inc. HIMX ██% $1.35B x 3.0x
Sunhydrogen, Inc. HYSR ██% $125M x 3.8x
Intchains Group Ltd ICG ██% $83M x 0.6x
Ichor Holdings, Ltd. ICHR ██% $1.64B -30.4x 2.5x
Indie Semiconductor, Inc. INDI ██% $703M -8.3x 1.9x
Intel Corp INTC ██% $227.78B 1307.5x 2.0x
Ipg Photonics Corp IPGP ██% $5.54B 178.2x 2.6x
Ideal Power Inc. IPWR ██% $31M -5.9x 3.0x
Jinkosolar Holding Co., Ltd. JKS ██% $1.31B x 0.1x
Kulicke & Soffa Industries Inc KLIC ██% $3.65B 14345.0x 4.4x
Kopin Corp KOPN ██% $390M x 18.3x
Sealsq Corp LAES ██% $703M x 6.0x
Nlight, Inc. LASR ██% $2.87B -10.7x 12.7x
Semileds Corp LEDS ██% $12M -3.6x 5.9x
Lightpath Technologies Inc LPTH ██% $568M -8.8x 7.3x
Lattice Semiconductor Corp LSCC ██% $13.30B 4312.0x 18.6x
Maxeon Solar Technologies, Ltd. MAXN ██% $41M x 1.0x
Microchip Technology Inc MCHP ██% $40.39B 28.8x 6.2x
Microchip Technology Inc MCHPP ██% $35.66B x 5.3x
Mobix Labs, Inc MOBX ██% $17M x 3.6x
Monolithic Power Systems Inc MPWR ██% $55.66B 89.6x 15.8x
Everspin Technologies Inc. MRAM ██% $246M 145.4x 3.7x
Marvell Technology, Inc. MRVL ██% $70.34B 28.4x 5.0x
Macom Technology Solutions Holdings, Inc. MTSI ██% $18.56B 114.5x 13.7x
Micron Technology Inc MU ██% $461.93B 38.8x 7.9x
Magnachip Semiconductor Corp MX ██% $99M -3.9x 0.4x
Maxlinear, Inc MXL ██% $1.58B -4.6x 3.5x
Nano Labs Ltd NA ██% $69M x 0.1x
Netlist Inc NLST ██% $351M -3.3x 33.9x
Nvidia Corp NVDA ██% $4.31T 35.9x 27.4x
Nve Corp /New/ NVEC ██% $333M 23.5x 5.7x
Navitas Semiconductor Corp NVTS ██% $2.07B -15.1x 5.5x
Nxp Semiconductors N.V. NXPI ██% $57.37B 28.4x 5.7x
On Semiconductor Corp ON ██% $26.38B 218.0x 3.4x
Osi Systems Inc OSIS ██% $4.90B 32.0x 5.8x
Penguin Solutions, Inc. PENG ██% $1.09B 42.9x 2.8x
Photronics Inc PLAB ██% $2.16B 15.8x 1.8x
Poet Technologies Inc. POET ██% $916M x x
Power Integrations Inc POWI ██% $2.65B 120.0x 3.9x
Peraso Inc. PRSO ██% $8M -0.1x 2.2x
Pixelworks, Inc PXLW ██% $34M -1.7x -18.9x
Qorvo, Inc. QRVO ██% $7.63B 22.4x 2.1x
Quicklogic Corp QUIK ██% $138M -651.3x 5.6x
Rubicon Technology, Inc. RBCN ██% $8M 8.2x 2.4x
Rambus Inc RMBS ██% $10.74B 46.6x 7.9x
Solaredge Technologies, Inc. SEDG ██% $2.14B -0.9x 5.0x
Shoals Technologies Group, Inc. SHLS ██% $992M 29.5x 1.7x
Sitime Corp SITM ██% $10.46B -44.5x 9.1x
Skywater Technology, Inc SKYT ██% $1.43B 11.3x 7.4x
Silicon Laboratories Inc. SLAB ██% $6.74B -18.2x 6.2x
Semtech Corp SMTC ██% $8.34B 292.1x 14.7x
Smartkem, Inc. SMTK ██% $2M x 0.5x
Solitron Devices Inc SODI ██% $53M 2039.7x 2.8x
Supercom Ltd SPCB ██% $40M -0.9x 1.1x
Sequans Communications SQNS ██% $46M x x
Stmicroelectronics N.V. STM ██% $30.39B x 1.7x
Stmicroelectronics N.V. STMEF ██% $26.54B x 1.5x
Skyworks Solutions, Inc. SWKS ██% $8.93B 18.7x 1.6x
Synaptics Inc SYNA ██% $3.15B 15.9x 2.3x
T1 Energy Inc. TE ██% $1.31B x 6.9x
Tower Semiconductor Ltd TSEM ██% $13.55B x 5.1x
Texas Instruments Inc TXN ██% $193.04B 38.6x 11.9x
Tigo Energy, Inc. TYGO ██% $299M -0.9x 24.8x
Ultra Clean Holdings, Inc. UCTT ██% $2.76B -331.9x 3.9x
Viavi Solutions Inc. VIAV ██% $6.86B 354.0x 8.2x
Valens Semiconductor Ltd. VLN ██% $153M x 1.5x
Wolfspeed, Inc. WOLF ██% $889M -1.3x 1.4x
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Frequently Asked Questions - Applied Optoelectronics, Inc. Stock Forecast

How accurate are Applied Optoelectronics, Inc. stock predictions?

Our AI model shows a -7% Spearman correlation coefficient for AAOI predictions, based on advanced machine learning algorithms trained on over 10 years of market data. This measures the strength of the monotonic relationship between predicted and actual price movements.

What factors influence Applied Optoelectronics, Inc. stock price forecasts?

Our analysis considers Applied Optoelectronics, Inc.'s financial metrics, Manufacturing sector trends, market sentiment, technical indicators, earnings data, and macroeconomic factors affecting stock performance.

Is Applied Optoelectronics, Inc. a good investment in 2025?

Based on our AI analysis, Applied Optoelectronics, Inc. shows potential for various market scenarios. Consider your risk tolerance, investment timeline, and portfolio diversification before making investment decisions.

How often are Applied Optoelectronics, Inc. forecasts updated?

Applied Optoelectronics, Inc. stock forecasts are updated daily using real-time market data, ensuring you receive the most current AI-powered predictions and investment insights.

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