Applied Optoelectronics (AAOI) has lost 53.1% over six months, even though its revenue hit records, with $191.92 million last quarter, up 86.4%. The article says the drop mainly reflects a sector-wide unwind of high-beta AI optics trades, plus a first-quarter revenue miss and a $20 million to $25 million third-quarter hit from a 100G customer's switch shortage. Management says demand runs 20% to 40% above capacity and expects over $200 million in 1.6T orders to ship mostly in Q4. The consensus target is $160 against a $76.74 share price, while two analysts set a $220 Street-high target. The author notes the bull case depends on execution, since 10 customers make up 99% of revenue.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Applied Optoelectronics Cratered 50% Over 6 Months: It’s Going to Triple According to 2 Wall Street Pros
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