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The AI optical connectivity trade is cooling this Friday afternoon, with the same names that led August higher pulling back in unison.
ASML's stronger price performance, favorable valuation and rising earnings estimates give it the edge over AAOI in this tech-stock faceoff.
Applied Optoelectronics 800G revenues surge more than tenfold year over year as demand outpaces supply and capacity expansion targets further growth through mid-2027.
Applied Optoelectronics is positioned to benefit from the data center industry's shift to high-bandwidth optical transceivers, driven by AI infrastructure demand. I initiate AAOI with a 'Strong Buy' rating, citing robust demand, aggressive capacity expansion, and a roadmap aligned with 800G/1.6T/3.2T industry transitions. AAOI's valuation is compelling, with price-to-sales multiples compressing rapidly as revenue ramps, though heavy dilution from equity issuance is a key risk.
It's aiming to reap as much as $600 million. This isn't its first time at this particular rodeo, however.
Stocks are mixed at midday as the Dow and Nasdaq trade in opposite directions
Applied Optoelectronics (NASDAQ:AAOI) stock is down 12% to $109.94 early Monday after the company disclosed a plan to raise $600 million through an at-the-market equity offering.
U.S. stock futures were mixed this morning, with the Nasdaq 100 futures falling over 100 points on Monday.
SEC filings for AAOI aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.