AAOI Applied Optoelectronics, Inc.

Stock NASDAQ Technology

US$96.73 +1.54% Latest close

Applied Optoelectronics, Inc. (AAOI) trend channel, buy level and 3-month target on Trade The Path. Sector: Technology. Listed on NASDAQ. Levels below are fitted to this ticker's own swing highs and lows (Theil–Sen, log-price), then projected 3 months. If this ticker has no settled sample yet, treat the numbers as a geometric read, not a track record. Information only, not financial advice.

Mid-channel

Price is between the two trend lines. Nothing to act on yet.

Read from the last 9 months of history we hold: rising, drifting more than +100% a year. The target of US$118.24 is below the nearest ceiling (US$144.02), so it does not depend on a breakout. What would overturn this: a close below US$74.99 β€” the floor of the channel being read β€” after which the trend, not the entry, is what was wrong.

9 months read from
US$74.99 – US$144.02 Rising channel, more than +100% a year
Position in that channel
31% 0% at the floor, 100% at the ceiling

What broke this trend

The fall
-66% from US$222.8813 May 2026 β†’ 29 July 2026
Whose problem it was
Its sector2 of 4 Communication Equipment peers fell with it
Does it resolve?
Unsettled too close to a coin toss on the record to call
Regained so far
13%of what it lost
What the record says
49% of 439 comparable falls came back, typically in 160 days measured across every stock we hold history for, its peer group being too small

The trend broke in May 2026: price fell 66% from 222.88 to 76.48 by July 2026, and has regained 13% of that fall since. It was not this company alone: 2 of 4 Communication Equipment peers fell as far within weeks of it, so the fall was the sector repricing rather than news about this business. The wire that week: β€œWhy Is Applied Optoelectronics (AAOI) Stock Trending Overnight?”. What happens next is not settled: falls of about 66% here have come back to the old high 49% of the time (439 comparable falls), typically in 160 days, which is too close to a coin toss to price a recovery from.

Reported at the time: Why Is Applied Optoelectronics (AAOI) Stock Trending Overnight? β€” 8 May 2026

Price history, with the path projected 3 months forward

US$0.00US$100.0US$200.0US$300.0Oct 23Mar 24Aug 24Jan 25June 25Nov 25Apr 26Sept 26 today Buy nowTarget Buy now US$95.1 Β· est. 16 Sept 26Our target US$118.2 Β· est. 24 Sept 26
  • Daily close
  • Upper trend line (9 months)
  • Lower trend line (9 months)
  • Dashed after today: projected 3 months
  • Our buy
  • Our target

Suggested path

Buy now

US$96.73

last close Β· 16 Sept 2026

Channel buy is US$105.57; last close is the better price available now.

Our target

US$118.24

by 24 Sept 2026

Projected move

22.2%

gross, before costs

Last close is our buy β€” the best price available now.

The lines are drawn where this stock has actually turned: 2 touches on the ceiling, 2 on the floor, each fitted to the slope that catches the most of them. Buying one average daily range below its 50-day mean, on heavier volume than usual and while it is still above its 200-day mean, has come up 791 times; measured against the 6% floor β€” the least a call has to be worth to be worth making, not what it aims at β€” 73% cleared it, typically in 34 days, with price going about 5% against the entry along the way (63% in the worst case we have on record). Trades that have not reached the target within 3 months are counted as misses, whatever they are worth at the time. The prices above are this stock’s own β€” its average, its volatility β€” but the setup is the same one we apply everywhere: derived on eight unrelated tickers, then confirmed on 87 others it was never fitted to. We deliberately do not tune it to each stock: doing so scores worse on history the tuning never saw β€” 58% against 71% β€” because it fits the past rather than the future. On this stock the setup has come up 12 times so far, reaching target 83% of the time. The sell price comes from where this stock is projected to be, not from a minimum worth taking: the fitted path reaches 16% above the entry within 90 days, and of the sizes that path supports, 12% is the one that has returned the most per day of money tied up here β€” measured over 146 stretches of this stock’s own history, since the published entry itself is too rare here to size a target from, reached 81% of the time, typically in 8 days. Smaller sizes got there sooner but paid less for the weeks they used; larger ones need a break above the projected ceiling, which is not the base case. The date published is whichever is later: that typical time, or the day the projected path itself reaches the price. It is a prediction, so it can be revised: if the run tops out before it gets there, the target is cut to what is actually on the table and you are told the same day. An ordinary pullback is not treated as topping out β€” those go on to make a new high about 8 times in 10, so they are ridden through. What triggers the revision is price closing below its 50-day trend and staying there, after which the odds of recovery fall to roughly 3 in 10.

Upper line touches
2
Lower line touches
2
Fit confidence
59%
Fitted
16 Sept 2026

About Applied Optoelectronics, Inc.

Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions. Its extensive product catalog features optical modules, a range of laser components, subassemblies, transceivers, and complete turn-key systems. The company also supplies critical infrastructure hardware such as headend, node, and distribution equipment. AAOI caters to a varied clientele, including internet data center operators, manufacturers of cable television and telecommunications equipment, and internet service providers, utilizing both direct and partner-based sales channels. Founded in 1997, Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas.

Sector
Technology
Industry
Communication Equipment
CEO
Chih-Hsiang Lin
Employees
4,691
Country
US

https://www.ao-inc.com

Scorecard

Our own pillar scores, computed from the fundamentals below. They are not Morningstar ratings β€” that data is licensed and we do not redistribute it.

Valuation
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Profitability
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Financial health
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Cash generation
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Key statistics

Market cap
US$7.76B
Enterprise value
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Beta
3.78
Avg volume
11.38M
Revenue per share
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Dividend yield
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52-week range
18.5-233.67
Exchange
NASDAQ

Key ratios

P/E (TTM)
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PEG
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Price / sales
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Price / book
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EV / EBITDA
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Gross margin
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Operating margin
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Net margin
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Current ratio
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Quick ratio
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Debt / equity
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Interest cover
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Income statement

Balance sheet

Cash flow

Trend lines are fitted statistically to past swing highs and lows and projected forward on the assumption the same rhythm continues. It often does not. This is information, not advice.