Rosenblatt raised the firm's price target on Applied Optoelectronics (AAOI) to $220 from $140 and keeps a Buy rating on the shares. Despite a modest 1H26 top-line miss, the report highlighted strong underlying momentum driven by Amazon (AMZN) contributions including early 800G revenue, imminent qualification progress with Oracle (ORCL), and meaningful upward revisions to both 2026 guidance and longer-term revenue expectations, with management pointing to accelerating sequential growth through 1H27 and expanding demand across 100G, 400G, 800G, and emerging 1.6T products, reinforcing confidence in the company's growth trajectory and supporting its status as a top pick, the analyst tells investors in a research note.
