Applied Optoelectronics designs and manufactures optical communications components and equipment. Its portfolio includes high-speed optical transceivers, lasers, and related modules used by hyperscale data centers, cable broadband networks, and telecom operators. The company participates in the shift toward higher-bandwidth optical links required to connect servers, switches, and networking infrastructure.
Applied Optoelectronics Inc. (AAOI) has a MarketKingdoms composite score of 64.8 (B), an B-range rating. It ranks 848th of 1,866 covered companies, 120th of 176 in Technology (sector average 67.1) and 10th of 11 in Communication Equipment. Scores as of 2026-10-25.
Its strongest lenses are Expansion (growth) at 96 (Technology average 51) and Industry opportunity at 92 (Technology average 88). Its weakest lenses are Quality (profitability) at 9 (sector average 50) and Price (valuation) at 34 (sector average 50).
| Lens | Type | AAOI | Technology average | Communication Equipment average | Percentile in sector |
|---|---|---|---|---|---|
| Industry opportunity | Research signal | 92 | 88 | 92 | 94th |
| Stock selection | Research signal | 87 | 82 | 85 | 88th |
| KPI momentum | Research signal | 87 | 84 | 87 | 62nd |
| Catalyst watch | Research signal | 82 | 76 | 79 | 91st |
| Price (valuation) | Fundamental lens | 34 | 50 | 43 | 28th |
| Expansion (growth) | Fundamental lens | 96 | 51 | 62 | 99th |
| Quality (profitability) | Fundamental lens | 9 | 50 | 40 | 4th |
| Trend (momentum) | Fundamental lens | 43 | 50 | 49 | 36th |
The most recent call analysed was held on 2026-08-06 (fiscal 2026 Q2). MarketKingdoms checks what management promised on each call against what it later delivered.
The stock's valuation gap is -50.5%: its price is well below the path its market, sector and industry moves explain (strongly undervalued versus the model path). Factor sensitivity: market beta 2.31, sector beta 0.50, industry beta 1.73; the factor model explains 71% of its moves (R²).
| Company | Composite | Grade | Valuation gap |
|---|---|---|---|
| Lumentum Holdings Inc. (LITE) | 74.1 | B+ | -25.3% |
| Ciena Corp (CIEN) | 73.2 | B+ | -25.5% |
| Zebra Technologies Corporation (ZBRA) | 71.8 | B+ | -4.5% |
| Motorola Solutions Inc. (MSI) | 70.8 | B+ | -3.7% |
| Cisco Systems Inc. (CSCO) | 70.4 | B+ | -6.2% |
| Coherent Inc. (COHR) | 69.7 | B | -24.5% |
| Viavi Solutions Inc. (VIAV) | 68.4 | B | -5.7% |
| Harmonic Inc. (HLIT) | 66.9 | B | -1.6% |
Applied Optoelectronics Inc. financial statements · Technology sector ranking · Communication Equipment industry ranking · All covered companies
The composite score (0–100, graded A+ to D-) blends research signals from each earnings call with fundamental lenses from SEC filings and market prices. Research signals: Industry opportunity, Stock selection, KPI momentum and Catalyst watch, read from what management said and whether it delivered. Fundamental lenses: Price (valuation), Expansion (growth), Quality (profitability) and Trend (momentum). Scores are recalculated every night and after every earnings call. The valuation gap compares the actual price path with the path the stock's market, sector and industry moves explain; it is a model comparison, not a fair-value estimate.
General information, not investment advice.