Applied Optoelectronics Inc's stock rose by 7.40% as it crossed above the 20-day SMA, reflecting positive momentum in the market.
The increase in stock price comes amid insider selling by Chief Legal Officer David Kuo, who sold 12,500 shares for $501,875, representing 8.71% of his holdings. This sale was executed under a Rule 10b5-1 trading plan, indicating a strategic decision rather than a lack of confidence in the company's future. The company reported a strong Q3 revenue of $118.6 million, an 81.9% increase year-over-year, and forecasts Q4 revenue between $125 million and $140 million, despite facing a net loss of $17.9 million.
The strong revenue growth highlights robust market demand, but the ongoing net loss raises concerns about future profitability. Investors may need to weigh the positive revenue figures against the company's financial challenges when considering their investment strategies.
Wall Street analysts forecast AAOI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAOI is 38.25 USD with a low forecast of 15.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast AAOI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAOI is 38.25 USD with a low forecast of 15.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 34.890
Low
15.00
Averages
38.25
High
50.00
Current: 34.890
Low
15.00
Averages
38.25
High
50.00
Rosenblatt
Rosenblatt
Buy
maintain
$35 -> $50
2025-12-11
Reason
Rosenblatt
Rosenblatt
Price Target
$35 -> $50
AI Analysis
2025-12-11
maintain
Buy
Reason
Rosenblatt raised the firm's price target on Applied Optoelectronics to $50 from $35 and keeps a Buy rating on the shares. The company received its first volume order for 800G transceivers from a major hyper scale customer to support artificial intelligence data center growth, the analyst tells investors in a research note. The firm believes the announcement suggests one of Applied's 800G transceivers, likely 800G OSFP 2xFR4, has gained final product qualification with Amazon and will begin shipping for revenues. "This is unquestionably positive news," according to Rosenblatt. However, the firm thinks the stock could see a "brief" selloff on the news given the recent rally. It recommends buying Applied Optoelectronics "regardless of how the stock trades immediately following the announcement."
Needham
Buy
maintain
$38 -> $43
2025-12-11
Reason
Needham
Price Target
$38 -> $43
2025-12-11
maintain
Buy
Reason
Needham raised the firm's price target on Applied Optoelectronics (AAOI) to $43 from $38 and keeps a Buy rating on the shares. Applied Optoelectronics announced it received its first volume order for its 800G transceivers from a major hyperscale customer, assumed to be Amazon (AMZN), which signals the company has achieved the highly-anticipated qualification for its 800G transceiver, the analyst tells investors in a research note. The management should now more confidently and aggressively build-out production capacity, with the majority in its TX facilities, to meet demand for further high large volume hyperscale orders accelerating over the coming quarters, the firm added.
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Northland
Tim Savageaux
Outperform
maintain
$35 -> $45
2025-12-11
Reason
Northland
Tim Savageaux
Price Target
$35 -> $45
2025-12-11
maintain
Outperform
Reason
Northland analyst Tim Savageaux raised the firm's price target on Applied Optoelectronics (AAOI) to $45 from $35 and keeps an Outperform rating on the shares after the company announced the receipt of its first volume order for 800G transceivers from a larger hyperscale customers, which the firm views as "very likely" Amazon (AMZN). The company noted that it on track to meet the $4M-$8M revenue level for 800G modules in Q4, with 800G capacity exiting the year in the $120M per quarter range, the analyst points out.
Northland
Outperform
maintain
$30 -> $35
2025-11-17
Reason
Northland
Price Target
$30 -> $35
2025-11-17
maintain
Outperform
Reason
Northland raised the firm's price target on Applied Optoelectronics to $35 from $30 and keeps an Outperform rating on the shares following a visit to the company's Houston headquarters that the firm says highlighted the extent of the company's capability on both the InP laser epitaxy and fab front as well as nearly fully automated transceiver production.
About AAOI
Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies, and modules to complete turn-key equipment. The Company also designs, manufactures, and integrates its own analog and digital lasers using the proprietary Molecular Beam Epitaxy (MBE) and Metal Organic Chemical Vapor Deposition (MOCVD) alternative processes for the fabrication of lasers. The Company manufactures lasers and laser components and performs research and development activities for laser component and optical module products. The Company offers its fiber-optic networking products, primarily for four networking end-markets, such as cable television, (CATV), Internet data center, telecommunications, (telecom), and fiber-to-the-home (FTTH). The Company has manufacturing facilities in Taipei, Taiwan and Ningbo, China.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
