Added to YB: 2026-09-09
Pitch date: 2026-09-07
AAOI [bullish]
Applied Optoelectronics, Inc.
+2.92%
current return
Author Info
No bio for this author
Company Info
Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China.
Market Cap
$9.0B
Pitch Price
$108.39
Price Target
N/A
Dividend
N/A
EV/EBITDA
-356.12
P/E
-134.00
EV/Sales
14.70
Sector
Communications Equipment
Category
growth
AAOI UPDATE
AAOI (added to position): The position was increased because the $600M ATM is viewed as funding 1.6T capacity while demand exceeds supply by 20-40%, rather than as thesis-breaking dilution. Management has framed $471M of monthly revenue as capacity-gated, and the company is sold out through 2H27, when gross margin is targeted at 55-65%. The caveat is that Q2’s $0.06 EPS reflected a tax benefit, so true profitability has not yet arrived.
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