Applied Optoelectronics
AAOIMarket price data through November 12, 2026.
Performance
Nov 2021 – Nov 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- -50%
- 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
- 8 months
- How long Benson has been tracking this pick.
About Applied Optoelectronics
Applied Optoelectronics makes the tiny laser-powered parts that let computers inside AI data centers talk to each other using light instead of electricity. Think of them as the on-ramps to a fiber optic highway, where thousands of AI chips swap information every second. The company also sells equipment that powers cable TV and broadband networks.
The case for and against
Both sides of the story, in plain English.
- Six Straight Records
Sales hit a record 269.9 million dollars in the quarter ended September 2026, the sixth record quarter in a row. That is more than double the 118.6 million dollars from a year ago, and about 41 percent higher than just three months earlier. The company also earned a real profit of 6.3 million dollars, after losing 17.9 million dollars in the same quarter last year.
- Bigger Quarter Ahead
The company expects next quarter's sales to land between 385 million and 420 million dollars, roughly 50 percent above this record quarter. It also signed a multi-year deal with one of the world's biggest data center operators, and both its AI and cable TV businesses are growing. A deal like that gives it a clearer view of orders years ahead.
- Factory Growing Pains
The company's new US factory expansion is running behind schedule because getting enough electricity hooked up is taking longer than expected. Right now it has equipment to make roughly 330,000 units a month, and it is aiming for over 1 million a month by the end of 2027. If construction slips further, it could leave money on the table while competitors fill those orders.
- Fragile and Volatile
The 6.3 million dollar profit works out to only about 2 cents on every dollar of sales, so one small hiccup could tip it back into a loss. A handful of big customers make up most of the revenue, so losing even one would hurt badly. The stock also swings about 4 times as hard as the overall market, which makes this one of the most speculative names we cover.
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How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-11-12. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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