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Stock impact report

Buy Applied Optoelectronics, But Be Very Careful [Seeking Alpha]

Applied Optoelectronics, Inc. (AAOI) 
Last applied optoelectronics, inc. earnings: 2/27 04:10 pm Check Earnings Report
US:NASDAQ Investor Relations: investors.ao-inc.com/investor-relations
Company Research Source: Seeking Alpha
While consensus estimates still project $856M, AOI management targets $1B in CY26 revenue, with hyperscalers expected to contribute 70%, driven by 800G and 1.6T optical modules. Gross margin expansionary path from 31% to 40% is possible as AOI ramps higher-speed modules and expands capacity via aggressive capex. Execution risks remain significant, especially given customer concentration and past missteps, but current capex discipline supports a bullish stance. liulolo/iStock via Getty Images Investment Thesis Applied Optoelectronics (NASDAQ: AAOI ) shares surged 57% after reporting Q4 CY25 results that beat top-line estimates by 4.7% and overwhelmingly surprised markets with a mere 1 cent loss per share, significantly ahead of analysts' estimates. This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the Show less Read more
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