Applied Optoelectronics remains optimistic about its long-term growth despite a 60% stock decline since June. The company forecasts a 130% year-over-year revenue increase in Q3 and expects to return to profitability, driven by strong demand from AI infrastructure and capacity expansion. While margins may contract due to large hyperscaler orders, this is not seen as a major issue given the scale of business. The stock now trades at a low forward P/E of 7.75x for 2028 earnings, supporting a buy rating based on its multiyear growth potential.
As of Nov 03, 2026 09:22 WIB, Applied Optoelectronics (AAOI) trades on Pluang at USD 63.92, down 7.46% for the day. Despite the recent price drop, the stock sees strong buying interest with 78% of order activity favoring purchases. The company’s market cap stands at $5.87 billion, highlighting its significant presence in the technology sector.
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