Applied Optoelectronics, Inc. (0HGV)
LSE 
Summary
0HGV Chart
Applied Optoelectronics: The 800G And 1.6T Ramp Can Keep Driving The Stock Higher
I initiate coverage of Applied Optoelectronics with a Buy rating. The main growth drivers are the 800G and 1.6T transceiver ramp, the expansion of production capacity, and the company's ability to turn hyperscale AI demand into revenue. I estimate these drivers can support about $1.48 billion of 2027 revenue and about $287.6 million of adjusted EBITDA if execution remains on track.
Applied Optoelectronics: Despite A Risk On Guidance, It's Bullish From Here
Applied Optoelectronics is experiencing hypergrowth, driven by surging demand for 800G/1.6T optical transceivers and aggressive capacity expansion. AAOI raised full-year revenue guidance to $1.1B, with management projecting sequential quarterly growth and a potential $6B annualized run rate by mid-2027. Despite margin compression and significant dilution, AAOI's valuation remains attractive at under 10x NTM sales for a company targeting 120% CAGR through FY28.
Applied Optoelectronics Sees Strong Demand From Data Centers And AI Computing
AOI reported record revenue for Q1-2026. Demand is driven by data center and AI infrastructure growth. The company expects to exceed a billion in revenue for 2026.
Applied Optoelectronics, Inc. (0HGV) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Applied Optoelectronics, Inc. ever had a stock split?
Applied Optoelectronics, Inc. Profile
| Semiconductors & Semiconductor Equipment Industry | Information Technology Sector | Chih-Hsiang Lin CEO | LSE Exchange | US03823U1025 ISIN |
| US Country | 3,309 Employees | - Last Dividend | - Last Split | 26 Sep 2013 IPO Date |
Overview
Applied Optoelectronics, Inc. (AOI) is a leading company in the optic-fiber networking industry, well-known for designing, manufacturing, and selling a wide array of fiber-optic products. Established in 1997, AOI has grown its presence not just in the United States but also across Taiwan and China. With a robust portfolio catering to the needs of internet data center operators, cable television networks, telecom equipment manufacturers, and internet service providers, AOI has carved a niche for itself. The company operates through both direct and indirect sales channels, ensuring its advanced optical solutions are accessible to a broad spectrum of industries. Headquartered in Sugar Land, Texas, AOI's commitment to innovation and quality has positioned it as a key player in the fast-evolving fiber-optic networking sector.
Products and Services
Applied Optoelectronics, Inc. offers an extensive range of products and services designed to meet the diverse needs of the fiber-optic networking industry. These include:
- Optical Modules: These modules are essential for converting electrical signals into optical signals (and vice versa), enabling high-speed data transmission over fiber-optic cables. They are widely used in internet data centers and telecommunications.
- Optical Filters: AOI's optical filters play a crucial role in managing wavelengths in fiber optic systems, ensuring signal purity and improving the performance of optical networks.
- Lasers and Laser Components: Critical for generating the light that travels through fiber-optic cables, AOI's lasers and their components are recognized for their reliability and efficiency, supporting various communication and data transmission applications.
- Subassemblies: These are partly assembled components that are ready to be integrated into larger systems, offering flexibility and convenience to manufacturers by reducing production time and costs.
- Transmitters and Transceivers: Facilitating the transmission and reception of optical signals, these devices are fundamental in expanding network capabilities and enhancing connectivity solutions for service providers.
- Turn-Key Equipment: AOI provides comprehensive solutions that are fully prepared for immediate use, ensuring a quick and efficient setup of optical networks for its clients.
- Headend, Node, Distribution Equipment: These components are integral to the infrastructure of cable television and fiber-to-the-home systems, ensuring that signals are correctly distributed and managed across the network.
- Amplifiers: Amplifiers by AOI strengthen the optical signals in the network, ensuring long-distance transmission without loss of data integrity, which is paramount for both telecom and data center networks.
