AU · rank #5 · 2026-05-15
AAOI
NASDAQ · $16.34B
Why this pick · factor scores
The exact numbers the algorithm saw.
| Composite score Z-score blend of all factors below. | 2.543 |
| EPS revisions (30d) Net up-revisions in consensus EPS over the past month. | +157.45% |
| Net revisions (30d) Number of analysts revising upward minus downward. | 4 |
| Insider signal (90d) $0 across 0 unique buyers. | -0.120 |
| Analyst upside Consensus target $151.30 | -25.7% |
| Momentum acceleration 3-month minus 12-month momentum. | +268.40% |
| Analyst rating 1 = Strong Buy, 5 = Strong Sell. | 4.20 |
| Gross margin TTM | +29.6% |
| 52w high | $233.67 |
| Market cap | $16.34B |
AI research card
Independent qualitative review before order placement.
Summary
Applied Optoelectronics (AAOI) designs and manufactures fiber-optic networking products, including optical transceivers and lasers, primarily for internet data centers, CATV, telecom, and fiber-to-the-home (FTTH) markets, with a growing focus on AI data center infrastructure.
Rationale
The significant positive EPS revisions and high momentum acceleration suggest strong recent operational improvements and increasing investor interest, potentially driven by demand for AI data center optics.
Material risks
- 1Despite recent revenue growth, AAOI has consistently reported net losses and negative margins, raising concerns about sustained profitability.
- 2The analyst upside percentage is significantly negative, and the consensus price target is considerably lower than the current stock price, indicating potential overvaluation or differing analyst expectations.
Verdict reasoning
While momentum and EPS revisions are strong, persistent unprofitability and a large negative analyst upside present considerable risks.