← Analyst Upside
AU · rank #5 · 2026-05-18
AAOI
NASDAQ · $16.34B
verdict · CAUTION
Why this pick · factor scores
The exact numbers the algorithm saw.
| Composite score Z-score blend of all factors below. | 2.648 |
| 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. | -0.126 |
| Analyst upside Consensus target $151.30 | -20.5% |
| Momentum acceleration 3-month minus 12-month momentum. | +250.14% |
| 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, Inc. (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.
Rationale
The significant positive EPS revisions and high number of net revisions suggest improving analyst sentiment and potential for upward price movement, despite the current negative analyst upside percentage.
Material risks
- 1The average analyst price target indicates a significant downside from the current price, with some analysts having much lower targets.
- 2Despite strong momentum, the company has reported recent net losses and negative margins, raising concerns about profitability and valuation.
Verdict reasoning
While positive revisions are a good sign, the substantial negative analyst upside and ongoing profitability concerns warrant caution.