Applied Optoelectronics' stock dropped over 50% in six months despite record revenue growth driven by AI data center demand. Two Wall Street analysts see the stock potentially tripling from its current price, citing strong customer demand exceeding supply and a major shipment of 1.6T units expected in Q4. However, risks remain from customer concentration, supply chain issues, and recent earnings cuts. The stock's future hinges on successful execution of upcoming shipments and margin improvements.
Applied Optoelectronics (AAOI) trades at USD 77.56 on Pluang as of Oct 22, 2026 00:02 WIB, showing a modest 1.07% gain for the day. Despite the stock's sharp drop over six months, Pluang investors currently lean bullish with 70% buy orders. The stock remains far below its 52-week high of USD 223.10, reflecting ongoing market caution amid the company's operational risks.
Jefferies analyst Blayne Curtis increased the price target for Lumentum from $1,200 to $1,250, reflecting optimism about the optics sector ahead of earnings reports. Lumentum, which produces optical products for communication networks, saw its stock ...
Optics stocks including Applied Optoelectronics, Lumentum, and Coherent rose between 2% and 5% ahead of their November earnings reports, driven by strong demand for AI-related optical components. Lumentum's CEO highlighted multiyear sell-out conditio...
