Added to YB: 2026-03-10
Pitch date: 2026-03-07
AAOI [neutral]
Applied Optoelectronics, Inc.
+11.57%
current return
Author Info
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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
$7.2B
Pitch Price
$95.17
Price Target
N/A
Dividend
N/A
EV/EBITDA
-316.11
P/E
-149.34
EV/Sales
15.86
Sector
Communications Equipment
Category
growth
The Photonics Supercycle: What AAOI’s 10x Ambition Means for the Semiconductor Supply Chain: 5 Key Suppliers to Benefit
AAOI (deep dive): Booked out until mid-2027 for 800G/1.6T transceivers; targeting 10x revenue to $4.5B annualized run-rate by 2027. Vertical integration moat (in-house laser diodes + 400mW pump lasers) + Texas manufacturing for US hyperscalers. LPO power advantage vs DSP. Risks: CPO disruption (~2028+), $250M ATM dilution, still unprofitable ($38.2M net loss FY25), firmware qualification delays, China supply chain. Key suppliers benefiting: VECO (MBE equipment), AXTI (InP substrates), MTRN (thermal materials), SMTC (laser drivers), GLW (fiber).
Read full article (18 min)