Applied Optoelectronics
AAOIMarket price data through September 11, 2026.
Performance
Sep 2021 – Sep 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- -1%
- How much this stock is up since Benson first picked it — measured from the price at the time of that first pick, not from today.
- First pick price
- ~$106
- Roughly what one share cost when Benson first picked this stock. This is the starting line for the Benson Return.
- Tracking since
- March 2026
- The month this stock first became a Benson pick.
- Tracking duration
- 6 months
- How long Benson has been tracking this pick.
About Applied Optoelectronics
Applied Optoelectronics makes the optical parts that move data between machines using light instead of electricity. Inside an AI data center, thousands of processors have to talk to each other constantly, and light is the only way to move that much information fast enough. The company also supplies equipment to cable television networks.
The case for and against
Both sides of the story, in plain English.
- Five Record Quarters
The company set a revenue record for the fifth quarter in a row in the period ended June 2026. Sales of its 800G products, the faster generation used in AI networks, more than doubled compared with the previous quarter. Revenue across the past year grew almost 83 percent.
- Demand Beyond Capacity
Management says orders are expected to outrun what its factories can physically produce through the middle of 2027. It also returned to profitability on an adjusted basis this quarter for the first time in a long while. When a company cannot make enough of what it sells, pricing tends to work in its favor.
- Still Losing Money
Despite the record sales, the company still loses money once all real costs are counted, with margins running at negative 9.6 percent. Growing revenue while losing money on each dollar is a difficult place to be, and it means the company may need to raise more cash from investors.
- Few Customers, Wild Swings
A small handful of customers account for most of the revenue, so losing even one would be severe. The stock also swings nearly four times as hard as the overall market, which is the most extreme of any holding on this list. This is the most speculative name we cover.
Other companies we track
How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-09-11. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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