AAOI

LITE surged 15% after revenue more than doubled to $1.01B in fiscal Q4 2026, with CEO Michael Hurlston noting pump-laser shipments are up 80% year over year and effectively sold out. SMCI jumped 16% and CRWV soared 20% on AI infrastructure prints that reinforced hyperscaler capex momentum alongside Lumentum's optical demand surge. JPMorgan raised its LITE target to $1,280 while Bank of America cut to $1,000, splitting on valuation as the stock nears its sell-side ceiling. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Lumentum (NASDAQ:LITE) shares are surging Wednesday, up 15% to $942 in midday trading after the optical components maker delivered a blowout fiscal Q4 2026 report. The move extends an already ferocious rally, with LITE stock up 123% year to date through Tuesday's close. The rally is spilling across the AI optics complex. Coherent (NYSE:COHR) shares are climbing 9% to $358, Corning (NYSE:GLW) stock is up 5% to $167, and Applied Optoelectronics (NASDAQ:AAOI) shares are advancing 3% to $139. The iShares Semiconductor ETF (NASDAQ:SOXX) is trading at $551, a risk-on tell for the broader chip complex. Lumentum reported fiscal Q4 2026 revenue of $1.01 billion, more than doubling year over year and topping the $988.6 million consensus. Non-GAAP EPS came in at $3.23, ahead of the $2.99 consensus, with non-GAAP gross margin reaching 50.4%. The guidance turbocharged the reaction. Lumentum sees fiscal Q1 2027 revenue of $1.225 billion to $1.275 billion, with EPS of $4.05 to $4.35. CEO Michael Hurlston stated the company will hit its $1.25 billion quarterly revenue target more than a quarter early, with pump-laser shipments up more than 80% year over year and "effectively sold out." Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Hurlston added that the 1.6T transceiver ramp is accelerating, and fiscal Q1 2027 should mark the company's first triple-digit OCS revenue quarter (above $100 million). Lumentum CFO Wajid Ali underscored the operating leverage embedded in the guide. Coherent, Corning, and Applied Optoelectronics are all trading higher on direct read-through from Lumentum's optical demand commentary. The catalyst is layered on top of same-evening AI infrastructure prints from Super Micro Computer (NASDAQ:SMCI), CoreWeave (NASDAQ:CRWV), and Nebius Group (NASDAQ:NBIS) that reinforced hyperscaler capex trajectories. SMCI stock is up 16%, CRWV shares are jumping 20%, and NBIS stock is soaring 27% in Wednesday trading. Ciena (NYSE:CIEN) shares are also rallying, up 13% as the optical systems supplier gets pulled into the same demand narrative. Sell-side responses split between fresh price target hikes and valuation caution. JPMorgan raised its LITE stock price target to $1,280 from $1,165 (Overweight), arguing Lumentum "sidestepped near-term concerns" on transceiver mix. Mizuho lifted its target to $1,140 from $1,100 (Outperform), citing margin upside and a "strong laser chip moat." The pushback: Bank of America cut its target to $1,000 from $1,100 (Neutral) even after raising CY2027 and CY2028 EPS estimates by 19% each, reflecting a de-rating across shortage-area names. Meanwhile, Morgan Stanley's Meta Marshall raised her target to $1,000 from $900 (Equal Weight), biased positively near term but flagging no clear catalyst until fall and next year's OFC conference. Investors can watch for whether today's gains hold into the close and whether follow-on analyst notes push targets higher into Thursday's session. The SOXX ETF is a broad semiconductor fund, so pure-play optics names remain a small slice and single-name catalysts get diluted at the ETF level. With LITE stock now trading near the high end of the sell-side range, position sizing discipline matters. Investors should consider trimming their exposure into strength if the move outruns the fundamentals, while watching Ciena's upcoming print and any hyperscaler capex updates for confirmation that the AI optical cycle still has room to run. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Corning didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Lumentum’s fiscal fourth quarter revenue more than doubled to $1.01 billion. Analysts expect Coherent’s fiscal fourth quarter revenue to rise 30% to $1.98 billion, which would be the highest pace of growth in three years. Stocktwits sentiment was ‘extremely bullish’ for LITE and ‘bullish’ for COHR on Wednesday. Lumentum Holdings’ stock surged 8% in premarket trading Wednesday after the company reported upbeat quarterly results, lifting peer photonics stocks as investors turn their focus to Coherent Corp.'s earnings report due after the market close. Applied Optoelectronics’ shares rose 4%, Coherent’s shares rose 5.6%, and POET Technologies’ stock gained 2.6%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Lumentum’s fiscal fourth quarter revenue more than doubled to $1.01 billion, exceeding expectations of $987.70 million. Adjusted diluted EPS was $3.23, above an estimated $2.97 per share. For the current quarter, Lumentum expects revenue in the range of $1.225 billion to $1.275 billion, as well as adjusted earnings per share between $4.05 and $4.35 – well above analysts’ expectations of $1.157 billion in revenue and $3.61 per share profit. Analysts expect Coherent’s fiscal fourth quarter revenue to rise 30% to $1.98 billion, which would be the highest pace of growth in three years. Adjusted profit is expected to rise 61% to $1.62 per share. Currently, 16 out of 21 analysts rate the stock ‘Buy’ or higher and five rate it ‘Hold,’ per Koyfin. Their average price target of $394.62 implies a 20% upside to the stock’s closing price on Tuesday. Coherent, POET, Lumentum Holdings and Applied Optoelectronics are all key suppliers in the fast-growing optical networking and photonics market. Coherent sells lasers, optical transceivers, silicon photonics, and advanced materials used to connect GPUs across massive AI clusters, while Lumentum and Applied Optoelectronics supply high-speed optical transceivers, lasers, and networking components that move data between AI servers. POET, a much smaller player, develops optical engines and its proprietary Optical Interposer platform designed to make AI optical modules cheaper, faster and more power efficient. Investor interest in all four has surged as hyperscalers ramp AI infrastructure spending, driving expectations of a multi-year boom in optical connectivity, which is increasingly viewed as a critical bottleneck in scaling next-generation AI data centers. LITE was among the top 10 trending stocks on Stocktwits at the time of writing, with the retail sentiment for the stock climbing to ‘extremely bullish’ from ‘bullish.’ The sentiment was ‘bullish’ for COHR and POET, and ‘extremely bullish’ for Applied Optoelectronics. “$LITE analyst upgrade tomorrow $1000 to $1500. It’s going to be a juicy day,” a trader wrote. For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: SMCI Stock Jumps Premarket: Super Micro Keeps Lid On $60B Orderbook, CFO Says ‘Emerging Neoclouds And CSPs’ In Mix Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: FLYX Q2 2026 Earnings Summary ALT Q2 2026 Earnings Summary NEXN Q2 2026 Earnings Summary

Coherent and Lumentum are selling off 12% and 7% ahead of earnings after both stocks surged over 100% year to date at extreme valuations. Applied Optoelectronics slid just 1% after already reporting, while the SOXX ETF dropped only 1%, confirming the selloff is optics-specific, not a broad semiconductor unwind. Options markets lean defensive with put/call ratios of 1.54 and 1.19 as Lumentum and Coherent report earnings back-to-back this week. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Shares of Coherent (NYSE:COHR) are sliding midday Monday, with Coherent stock down 12% to $333.83 as traders take profits across the AI optics complex. Lumentum Holdings (NASDAQ:LITE) isn't far behind, with Lumentum shares off 7% to $830.05. The pullback caps a parabolic multi-week run in the group. Coherent stock had rallied sharply into the week ending August 7, while Lumentum shares climbed alongside it. The move looks like classic profit-taking and pre-earnings de-risking two richly valued AI optical-networking names, with no fresh negative headline behind it. Coherent stock is coming off a monster tear, up 105% year to date heading into today. Lumentum shares are even more stretched, with Lumentum stock having gained 142% year to date prior to today's session. Both names ran hard on a reported U.S. move to restrict Chinese optical transceivers. Community chatter has since turned to vague sector-rotation talk that weighs near-term supply-chain uncertainty against long-term AI-networking demand. The valuation math also matters here. Coherent trades at a trailing 12-month P/E ratio of 159.96x, and Lumentum sits at 145.91x. Both names were priced for perfection heading into their next earnings reports, which helps to explain why they are selling off hardest today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. The earnings calendar is doing a lot of the work behind today's price moves. Lumentum reports its fiscal Q4 2026 results after the close on Tuesday, August 11, and Coherent follows with its fiscal Q4 2026 report after the close on Wednesday, August 12. This helps to account for why another major AI optics name is barely budging. Applied Optoelectronics (NASDAQ:AAOI) shares are down just 1% to $133.63, as Applied Optoelectronics already delivered its report on August 6 and doesn't have another earnings event coming soon. Applied Optoelectronics is not profitable on a trailing-12-month basis, so there's no TTM P/E ratio to anchor to. Overall, Applied Optoelectronics is insulated from the pre-earnings de-risking pressure that's hitting Coherent and Lumentum this morning. The broader chip complex is holding up better than the optics pure-plays, which tells you that this is optics-specific, not a broad semiconductor unwind. The iShares Semiconductor ETF (NASDAQ:SOXX) is down 1% to $536.94, a modest slip for a fund concentrated in large-cap chipmakers where optical-component names occupy only a small slice of the basket. The iShares Semiconductor ETF carries an expense ratio of 0.33% and is still up 76% year to date. That relative calm underscores the point: investors are trimming stretched positions in the two optical suppliers most tied to NVIDIA's (NASDAQ:NVDA) AI data center buildout, not stepping away from semiconductors as a whole. NVIDIA remains the demand engine underpinning the optical-networking story, and the next NVIDIA earnings report is widely watched as a sector catalyst. Any hesitation on AI capex expectations could land hardest on Coherent and Lumentum, the two premier NVIDIA optical partners. Investors can watch for whether Lumentum's report on Tuesday afternoon and Coherent's on Wednesday afternoon reset the group's tone, or simply extend today's give-back. Options positioning is already leaning defensive, with Coherent's full-chain put/call ratio at 1.19 and Lumentum's at 1.54. Knowing all of this, traders may want to size their positions carefully into the upcoming earnings releases. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Applied Optoelectronics and Coherent each surged 13% after Applied Optoelectronics nearly doubled its Q2 revenue to $192M, swinging from an $8.8M earnings loss to profitability. The SOXX semiconductors ETF gained 2% broadly, but a weaker-than-expected July jobs report cutting Fed rate-hike expectations gave AI-linked photonics stocks an added tailwind. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Optics and photonics stocks are shooting higher in Friday trading, led by Applied Optoelectronics (NASDAQ:AAOI) stock, which is up 13% to $140.72 following the company's latest quarterly report. Coherent (NYSE:COHR) stock is also up 13% to $379.26, while Lumentum (NASDAQ:LITE) stock is gaining 8% to $908.11 as investors extend the rally across the optical communications industry. The broader market is providing a favorable backdrop, with the NASDAQ 100 up 0.94% and the iShares Semiconductor ETF (NASDAQ:SOXX) up 2% to $543.89. A weaker-than-expected July jobs report has reduced expectations for another Federal Reserve interest-rate hike in September, giving growth-oriented technology stocks another reason for investors to remain constructive. Applied Optoelectronics stock is getting the strongest company-specific boost of the group after the optical networking specialist reported its second-quarter results. The quarterly print appears to have reinforced the bullish case around Applied Optoelectronics' exposure to artificial intelligence data centers and the growing demand for high-speed optical transceivers. Applied Optoelectronics reported second-quarter 2026 GAAP revenue of $191.9 million, versus $103 million in the 2025's second quarter. The company also posted non-GAAP net income totaling $5.5 million, versus a non-GAAP net loss of $8.8 million in the year-earlier quarter, as demand for the company's optical products continued to benefit from AI data-center investment. Applied Optoelectronics' second-quarter results exceeded expectations and provided investors with another indication that demand for high-speed optical networking products remains strong. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Applied Optoelectronics has been building capacity to support demand for 800G and 1.6T products, with management previously pointing to a significant growth ramp as additional manufacturing capacity comes online. The company's recent expansion of its Pearland, Texas, manufacturing footprint also gives Applied Optoelectronics more room to scale production as AI infrastructure investment continues. Coherent stock is advancing 13% despite the lack of an obvious company-specific catalyst Friday. Coherent's exposure to optical communications and other photonics applications gives the stock a natural connection to the same AI infrastructure spending trend that is helping lift Applied Optoelectronics. Lumentum stock is similarly moving higher without a fresh company-specific announcement driving the gain. The combination of stronger semiconductor sentiment, lower expectations for near-term interest-rate hikes and Applied Optoelectronics' earnings reaction appears to be encouraging investors to revisit the broader optical technology group. Applied Optoelectronics, Coherent and Lumentum shares all have exposure to the optical components and networking technologies needed to move increasingly large volumes of data through AI infrastructure. That makes the three stocks particularly sensitive to expectations for data-center spending, even though their individual businesses and financial profiles differ. The broader semiconductor move also matters for the group. With the iShares Semiconductor ETF up 2%, the Friday advance isn't limited to photonics stocks, although Applied Optoelectronics stock is showing considerably more strength than the broader semiconductor sector following its earnings report. The bullish case for Applied Optoelectronics stock rests on continued AI infrastructure spending, stronger demand for high-speed optical products and the company's ability to translate new manufacturing capacity into sustained revenue growth. Coherent stock and Lumentum stock could also benefit if data-center operators continue increasing their investments in optical networking equipment. However, investors shouldn't assume that every photonics stock will benefit equally from the AI buildout. Applied Optoelectronics, Coherent and Lumentum still face execution, valuation and demand risks, while a broader economic slowdown could eventually pressure technology spending even if lower interest-rate expectations provide a near-term tailwind. Investors can watch for whether Applied Optoelectronics can sustain the momentum signaled by its latest quarterly report and whether Coherent and Lumentum begin receiving company-specific catalysts of their own. Given the sharp moves already underway, investors choosing to participate in the photonics rally should consider keeping their position sizes moderate rather than chasing stocks after large single-day gains. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Coherent didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Applied Optoelectronics AAOI stock gained 16% in the pre-market hours on Aug. 7, 2026, after it released better-than-expected results on Aug. 6. In the second quarter of 2026, the company achieved its fifth consecutive quarter of record revenues, reaching $191.9 million, which marked an 86% year-over-year increase and a 27% sequential rise from the first quarter. This robust performance was attributed to strong demand in both the data center and CATV (cable television) businesses. AAOI shares have also skyrocketed 256.4% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s rise of 16.9% and the Zacks Electronics - Semiconductors increase of 33%. The company’s shares have also outperformed its peers, which include Lumentum LITE, Ciena CIEN, and Coherent COHR. All three companies are expanding their footprints in the optical networking market. Lumentum, Ciena and Coherent shares have surged 127.4%, 72.2% and 81.1%.The company is benefiting from the surge in AI infrastructure deployments that require high-speed optical transceivers. This demand is particularly strong for next-generation products such as 400G, 800G, and 1.6T transceivers, which are essential for hyperscale data centers supporting AI workloads.  In the second quarter of 2026, 800G revenues were $12.8 million, representing 11.9% of datacenter revenues, and more than doubled sequentially. Meanwhile, 400G revenues totaled $48.4 million, rising more than fourfold year over year and 27.4% sequentially. Image Source: Zacks Investment Research Applied Optoelectronics is benefiting from the powerful dual engines of its data center and CATV businesses. In the second quarter of 2026, Datacenter revenues reached $107.66 million, up 140.4% year over year and 32.3% sequentially. The business accounted for 56% of total revenues, supported by stronger shipments of high-speed optical transceivers used in AI-focused infrastructure.The company is benefiting from its aggressive expansion of U.S.-based manufacturing capacity. The company’s Texas footprint now exceeds 1.6 million square feet, with new facilities dedicated to high-speed transceiver production coming online. Manufacturing capacity for 800G and 1.6T products is expected to ramp up from 200,000 units per month to over 650,000 by year-end, and to 930,000 by the end of 2027. This expansion is critical, as current and forecasted demand for AAOI’s products continues to outpace supply, with customer orders already booked well into next year.The CATV business delivered record revenues of $80.6 million, up 43.8% year over year and 20.6% sequentially in the second quarter of 2026. This growth was fueled by large shipments of 1.8 gigahertz amplifiers to major customers and new wins such as being selected by Mediacom as the primary vendor for DOCSIS 4.0 network upgrades. The broad-based appeal of AAOI’s amplifiers and QuantumLink software, along with momentum among new MSO customers, has diversified the company’s revenue base and reduced reliance on any single market segment. AAOI expects CATV revenues to be between $100 million and $110 million in the third quarter of 2026 and expects to generate over $325 million annually in this segment. AAOI’s robust demand for its next-generation data center products, particularly driven by the rapid expansion of AI infrastructure and the company’s ongoing investments in manufacturing capacity, is expected to benefit the company’s top-line growth.For the third quarter of 2026, Applied Optoelectronics expects revenues between $255 million and $290 million. The Zacks Consensus Estimate for the third quarter is currently pegged at $270.28 million, indicating 127.84% year-over-year growth.Applied Optoelectronics expects non-GAAP earnings ranging from 11 cents to 26 cents per share. The consensus mark for earnings is currently pegged at 27 cents per share, which has remained unchanged over the past 30 days. This suggests an increase of 400% year over year. Applied Optoelectronics, Inc. price-consensus-chart | Applied Optoelectronics, Inc. Quote Despite its expanding portfolio, AAOI is suffering from production capacity and key component supply constraints, which have limited its ability to meet surging customer demand for next-generation AI infrastructure products. AAOI also faced temporary setbacks in its 100G product line in the second quarter of 2026 due to a memory shortage affecting customers’ ability to source switches. This is likely to result in a $20–25 million revenue shortfall in the third quarter of 2026. Operating expenses were also higher than expected, due to increased shipping costs and elevated R&D spending to qualify new products. Applied Optoelectronics shares are currently overvalued, as suggested by its Value Score of F.AAOI stock is trading at a premium with a trailing 12-month Price/Sales of 5.91X compared with the Electronics - Semiconductors industry’s 5.36X. Image Source: Zacks Investment Research Applied Optoelectronics is benefiting from robust and accelerating demand for its next-generation data center products (especially 800G and 1.6T transceivers), driven by AI infrastructure investments and its ability to rapidly expand manufacturing capacity and leverage in-house laser production.However, intensifying competition from larger rivals like Lumentum, Ciena and Coherent, production capacity constraints and supply chain challenges remain headwinds that could hurt the company’s financial performance. Stretched valuation also remains a concern.Applied Optoelectronics currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Coherent Corp. (COHR) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Applied Optoelectronics AAOI reported second-quarter 2026 non-GAAP earnings of 6 cents per share against a loss of 16 cents a year ago. The metric beat the Zacks Consensus Estimate by 100%. Revenues surged 86.4% year over year to $191.92 million and topped the consensus mark by 0.41%. The topline benefited from robust datacenter and CATV demand. Datacenter revenues more than doubled year over year, while 800G product revenues increased more than tenfold. Datacenter revenues reached $107.66 million, up 140.4% year over year and 32.3% sequentially. The business accounted for 56% of total revenues, supported by stronger shipments of high-speed optical transceivers used in AI-focused infrastructure. 800G revenues were $12.8 million, representing 11.9% of datacenter revenues, and more than doubled sequentially. Meanwhile, 400G revenues totaled $48.4 million, rising more than fourfold year over year and 27.4% sequentially. Management expects 800G revenues to increase nearly fivefold sequentially in the third quarter. Applied Optoelectronics, Inc. price-consensus-eps-surprise-chart | Applied Optoelectronics, Inc. Quote CATV revenues were a record $80.58 million, rising 43.8% year over year and 20.6% sequentially. The result was slightly above management's prior expectations of $75 million to $80 million.The company continued shipping significant volumes of 1.8 GHz amplifiers to its largest CATV customer. It also cited momentum with newer multiple-system operator customers and expects third-quarter CATV revenues between $100 million and $110 million. In the second quarter of 2026, on a non-GAAP basis, gross margin was 29.8%, down 60 basis points (bps) year over year but up 60 bps sequentially. Management continues to target gradual margin improvement, although near-term datacenter product mix remains a headwind.Adjusted EBITDA was negative at $0.54 million compared with a loss of $3.4 million in the year-ago quarter and positive adjusted EBITDA of $1 million in the preceding quarter. Non-GAAP operating expenses increased year over year as the company continued to invest in product development and capacity expansion. Research and development expense rose 68.8% year over year to $34 million, while sales and marketing expense increased 40.2% to $10.6 million. General and administrative expense climbed 59.8% year over year to $22.9 million, bringing total non-GAAP operating expenses to $67.6 million, up 60.6% year over year. Non-GAAP operating loss narrowed to $10.3 million from $10.8 million reported in the year-ago quarter. Total manufacturing capacity approached 200,000 units per month at quarter-end, up from nearly 100,000 units at the end of the first quarter. AAOI expects capacity for 800G and 1.6T products to exceed 650,000 units per month by year-end.Management said that forecast demand for 800G and 1.6T modules should exceed production capacity through mid-2027. The company expects initial production at its new 210,000-square-foot Sugar Land facility late in the third quarter and plans further capacity additions in Pearland and Houston. AAOI expects full qualification of its first 1.6T product with a major hyperscale customer within weeks of the earnings call, with shipments beginning later in the third quarter. Management said that it has more than $200 million of 1.6T orders in hand.The company expects at least $70 million of 1.6T revenues in the fourth quarter, although material availability remains a constraint. Separately, third-quarter 100G revenues are expected to decline because a customer cannot source enough 100G switches, creating a temporary offset to faster 800G growth. As of June 30, 2026, cash, cash equivalents, and restricted cash totaled $508.76 million, up from $449.38 million at the end of March.The company made $565.5 million of capital investments during the quarter, including $280 million of equipment prepayments. These expenditures primarily support expansion of 400G, 800G and 1.6T transceiver manufacturing capacity. For the third quarter of 2026, Applied Optoelectronics expects revenues between $255 million and $290 million. Non-GAAP gross margin is projected to be in the range of 29% to 30.5%. Non-GAAP net income is expected to be between $10.1 million and $24 million, translating into earnings of 11 cents to 26 cents per share based on approximately 92.8 million diluted shares. Management also continues to expect 2026 revenues of around $1.1 billion, with production capacity and component availability limiting near-term growth rather than demand. Applied Optoelectronics currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector include Applied Materials AMAT, Inuvo INUV and Analog Devices ADI. Each stock carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Materials shares have gained 105.3% in the year-to-date period. Applied Materials is set to report second-quarter 2026 results on Aug. 13.Shares of Inuvo have plunged 58.9% in the year-to-date period. Inuvo is set to report the second-quarter 2026 results on Aug. 11.Shares of Analog Devices have rallied 39.1% year to date. Analog Devices is slated to report fiscal third-quarter 2026 results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Inuvo, Inc (INUV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SUGAR LAND, Texas, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ: AAOI) (“AOI”), a leading provider of advanced optical and HFC networking products that power AI, today announced financial results for its second quarter ended June 30, 2026. “Q2 was a pivotal quarter for AOI. We delivered record revenue for our fifth consecutive quarter and achieved an important milestone as we returned to non-GAAP profitability in the quarter. Further, we saw a strong volume ramp of our 800G products, which more than doubled sequentially,” said Dr. Thompson Lin, AOI’s Founder, President and Chief Executive Officer. “Strong demand for high-speed optics alongside high-volume adoption of our 1.8 GHz CATV products generated powerful results during the quarter. We continue to see robust customer engagement around our 800G transceivers and 1.6 Tb products, and we forecast that demand will continue to outpace our production capacity through mid-2027. We continue to believe the fundamental drivers of long-term demand for our business remain robust and we are uniquely positioned as a key supplier to the AI, cloud infrastructure, and CATV markets.” “We’re pleased to deliver second quarter results that were in line with or better than our expectations,” said Dr. Stefan Murry, AOI’s Chief Financial Officer and Chief Strategy Officer. “During Q2, we continued to make solid progress on our production capacity ramp, particularly for our 800G and 1.6Tb products. We have a total manufacturing capacity approaching 200,000 units per month and continue to expect by the end of this year that we will be capable of producing around 650,000 pieces of 800G and 1.6 Tb products per month. We’re working hard to expand our capacity, and we continue to anticipate steady sequential revenue growth this year.” Second Quarter 2026 Financial Summary GAAP revenue was $191.9 million, compared with $103.0 million in the second quarter of 2025 and $151.1 million in the first quarter of 2026. GAAP gross margin was 27.7%, compared with 30.3% in the second quarter of 2025 and 29.1% in the first quarter of 2026. Non-GAAP gross margin was 29.8%, compared with 30.4% in the second quarter of 2025 and 29.2% in the first quarter of 2026. GAAP net loss was $22.8 million, or $0.28 per basic share, compared with net loss of $9.1 million, or $0.16 per basic share in the second quarter of 2025, and a net loss of $14.3 million, or $0.19 per basic share in the first quarter of 2026. Non-GAAP net income was $5.5 million, or $0.06 per diluted share, compared with non-GAAP net loss of $8.8 million, or $0.16 per basic share in the second quarter of 2025, and a non-GAAP net loss of $4.9 million, or $0.07 per basic share in the first quarter of 2026. A reconciliation between all GAAP and non-GAAP information referenced above is contained in the tables below. Please also refer to “Non-GAAP Financial Measures” below for a description of these non-GAAP financial measures. Third Quarter 2026 Business Outlook (+) For third quarter of 2026, the company currently expects: Revenue in the range of $255 million to $290 million. Non-GAAP gross margin in the range of 29% to 30.5%. Non-GAAP net income in the range of $10.1 million to $24.0 million, and non-GAAP income per share in the range of $0.11 to $0.26 using approximately 92.8 million shares. (+) Please refer to the note below on forward-looking statements and the risks involved with such statements as well as the note on non-GAAP financial measures. Conference Call Information The company will host a conference call and webcast for analysts and investors today, August 6, 2026 to discuss its second quarter 2026 financial results and outlook for its third quarter 2026 at 4:30 p.m. Eastern time / 3:30 p.m. Central time. This call will be open to the public, and investors may access the call by dialing 844-890-1794 (domestic) or 412-717-9586 (international). A live audio webcast of the conference call along with supplemental financial information will also be accessible on the company's website at investors.ao-inc.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing 855-669-9658 (domestic) or 412-317-0088 (international) and entering passcode 6704856. Forward-Looking Information This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "could," "would," "target," "seek," "aim," "predicts," "think," "objectives," "optimistic," "new," "goal," “priorities,” "strategy," "potential," "is likely," "will," "expect," “momentum,” "plan" "project," "permit," “positions” or by other similar expressions that convey uncertainty of future events or outcomes. These statements include management’s beliefs and expectations related to our outlook for the third quarter of 2026, the remainder of the year, and the first half of 2027. Such forward-looking statements reflect the views of management at the time such statements are made. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited to: reduction in the size or quantity of customer orders; change in demand for the company's products due to industry conditions; changes in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change in the rate of design wins or the rate of customer acceptance of new products; the company's reliance on a small number of customers for a substantial portion of its revenues; potential pricing pressure; a decline in demand for our customers' products or their rate of deployment of their products; general conditions in the internet datacenter, cable television (CATV) broadband, telecom, or fiber-to-the-home (FTTH) markets; changes in the world economy (particularly in the United States and China); changes in the regulation and taxation of international trade, including the imposition of tariffs; changes in currency exchange rates; the negative effects of seasonality; and other risks and uncertainties described more fully in the company's documents filed with or furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and our Quarterly report on Form 10-Q for the quarter ended June 30, 2026. More information about these and other risks that may impact the company's business are set forth in the "Risk Factors" section of the company's quarterly and annual reports on file with the Securities and Exchange Commission. You should not rely on forward-looking statements as predictions of future events. All forward-looking statements in this press release are based upon information available to us as of the date hereof, and qualified in their entirety by this cautionary statement. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in the company's expectations. Non-GAAP Financial Measures We provide non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP earnings (loss) per share, and non-GAAP Adjusted EBITDA to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive at our non-GAAP gross margin, we exclude stock-based compensation and related expenses, expenses associated with discontinued products, and non-recurring (income) expenses, if any, from our GAAP gross margin. To arrive at our non-GAAP net income (loss), we exclude all amortization of intangible assets, stock-based compensation expense, non-recurring expenses, unrealized foreign exchange loss (gain), losses from the disposal of idle assets, if any, and non-GAAP tax benefit (expenses) from our GAAP net income (loss). Included in our non-recurring expenses in Q2 2026 and Q2 2025 are employee severance expenses (if any) and legal expenses associated with litigation and certain legal and advisory expenses associated with purchase termination or patent protection. In computing our non-GAAP income tax benefit (expense), we have applied an estimate of our annual effective income tax rate and applied it to our net income before income taxes. Our non-GAAP Adjusted EBITDA is calculated by excluding depreciation expense, non-GAAP tax benefit (expense), and interest (income) expense, as well as the items excluded from non-GAAP net income (loss), from our GAAP net income (loss). Our non-GAAP diluted net earnings (loss) per share is calculated by dividing our non-GAAP net gain (loss) by the fully diluted share count (for periods in which non-GAAP net income is positive) or basic share count (for periods in which our non-GAAP net income is negative). We believe that our non-GAAP measures are useful to investors in evaluating our operating performance for the following reasons: We believe that elimination of items such as amortization of intangible assets, stock-based compensation expense, non-recurring revenue and expenses, losses from the disposal of idle assets, unrealized foreign exchange gain or loss, and depreciation on certain equipment undergoing reconfiguration is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance; We believe that elimination of expenses associated with discontinued products, including depreciation and inventory obsolescence is appropriate because these expenses are not indicative of our ongoing operations; We believe that estimating non-GAAP income taxes allows comparison with prior periods and provides additional information regarding the generation of potential future deferred tax assets; We believe that non-GAAP measures provide better comparability with our past financial performance, period-to-period results and with our peer companies, many of which also use similar non-GAAP financial measures; and We anticipate that investors and securities analysts will utilize non-GAAP measures as a supplement to GAAP measures to evaluate our overall operating performance. A reconciliation of our GAAP net income (loss), GAAP total gross profit, GAAP earnings (loss), and GAAP earnings (loss) per share for Q2 2026 to our non-GAAP net income (loss), non-GAAP total gross profit, Adjusted EBITDA, and earnings (loss) per share, respectively, is provided below, together with corresponding reconciliations for Q2 2025. Non-GAAP measures should not be considered as an alternative to gross profit, net income (loss), earnings (loss) per share, or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such other non-GAAP measures in the same manner. We have not reconciled the non-GAAP measures included in our guidance to the appropriate GAAP financial measures because the GAAP measures are not readily determinable on a forward-looking basis. GAAP measures that impact our non-GAAP financial measures may include stock-based compensation expense, non-recurring expenses, amortization of intangible assets, unrealized exchange loss (gain), asset impairment charges, loss (gain) from disposal of idle assets, and changes in the fair value of our convertible notes. These GAAP measures cannot be reasonably predicted and may directly impact our non-GAAP gross margin, our non-GAAP net income and our non-GAAP fully-diluted earnings per share, although changes with respect to certain of these measures may offset other changes. In addition, certain of these measures are out of our control. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort. About Applied Optoelectronics Applied Optoelectronics, Inc. (AOI) is a leading developer and manufacturer of advanced optical and HFC networking products that are the building blocks for AI datacenters, CATV and broadband fiber access networks around the world. AOI supplies this critical infrastructure to tier-one customers across cloud computing, CATV broadband, telecom, and FTTH markets. The company has R&D facilities in Atlanta, GA, and engineering and manufacturing facilities at its corporate headquarters in Sugar Land, TX, as well as in Taipei, Taiwan and Ningbo, China. For additional information, visit www.ao-inc.com. Investor Relations Contacts: The Blueshirt Group, Investor RelationsLindsay [email protected]

Interested in Applied Optoelectronics, Inc.? Here are five stocks we like better. Record growth and profitability: Second-quarter revenue reached $191.9 million, up 86% year over year, while non-GAAP net income was $5.5 million, or $0.06 per diluted share. Management said demand is strong, with sales constrained mainly by production capacity and component availability. AI networking products are driving expansion: Data center revenue rose 140.4% year over year to $107.7 million, led by surging 400G and 800G sales. The company expects 800G revenue to nearly quintuple sequentially in Q3 and plans to begin shipping its first 1.6-terabit transceivers, supported by more than $200 million in orders. Capacity investments underpin an aggressive outlook: Applied Optoelectronics forecast Q3 revenue of $255 million to $290 million and maintained its approximately $1.1 billion 2026 revenue target. It is expanding Houston-area manufacturing capacity while CATV revenue also hit a record $80.6 million and is projected to reach $100 million to $110 million in Q3. MarketBeat Week in Review – 05/18 - 05/22 Applied Optoelectronics (NASDAQ:AAOI) reported record second-quarter revenue and a return to non-GAAP profitability as demand for data center networking products and CATV equipment continued to grow. Management said near-term sales remain constrained primarily by production capacity and the availability of key components rather than customer demand. Revenue for the second quarter of 2026 reached $191.9 million, up 86% from a year earlier and 27% sequentially. The result marked the company’s fifth consecutive quarter of record revenue and fell within its guidance range of $180 million to $198 million. → 3 Drone Stocks That Should Soar After the Summer Slump Why Applied Optoelectronics Stock May Be Near a Turning Point Non-GAAP gross margin was 29.8%, compared with 29.2% in the first quarter and 30.4% a year earlier. Applied Optoelectronics posted non-GAAP net income of $5.5 million, or $0.06 per diluted share, exceeding its forecast range of a $0.03-per-share loss to $0.03 in earnings. GAAP net loss was $22.8 million, or $0.28 per basic share. “Demand to support next generation AI infrastructure remains so robust that our near-term revenue is bounded almost entirely by production capacity and key component availability,” Founder, Chairman and Chief Executive Officer Thompson Lin said during the company’s earnings call. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Light Speed Returns: Corning Cashes In on NVIDIA Growth Data center revenue totaled $107.7 million in the second quarter, rising 140.4% year over year and 32.3% from the prior quarter. The segment accounted for 56% of total company revenue. Sales of 400G products reached $48.4 million, or 45% of data center revenue, increasing more than fourfold from a year earlier and 27.4% sequentially. Revenue from 800G products was $12.8 million, representing 11.9% of data center revenue. The company said 800G revenue increased more than tenfold year over year and more than doubled sequentially. → Jersey Mike's Serves Fresh Gains After IPO Stumble Chief Financial Officer and Chief Strategy Officer Stefan Murry said Applied Optoelectronics expects 800G revenue to rise by nearly five times sequentially in the third quarter, subject to production capacity and component supply. The company also expects to begin shipping its first 1.6-terabit transceiver product later in the third quarter following customer qualification. Management said it expects one long-term hyperscale customer to return as a customer representing more than 10% of revenue in the third quarter as shipments of 800G and 1.6-terabit products increase. During the question-and-answer session, executives said the company had more than $200 million in 1.6-terabit orders and expected more than $70 million of 1.6-terabit revenue in the fourth quarter, with a larger ramp anticipated in 2027. The company expects a temporary decline in 100G revenue during the third quarter because one customer has been unable to obtain enough 100G switches to support its initial forecast. Management attributed the switch shortage to memory supply constraints and said it expects the weakness to persist until memory availability improves. Applied Optoelectronics is expanding manufacturing capacity for 800G and 1.6-terabit transceivers in Texas. Its manufacturing footprint in the greater Houston area now exceeds 1.6 million square feet across properties in various stages of development, according to management. The company expects initial production at a 210,000-square-foot facility near its Sugar Land headquarters to begin late in the third quarter. The facility will be dedicated to 800G and 1.6-terabit transceivers, while shifting existing transceiver production out of the headquarters facility is expected to create room for additional indium phosphide capacity. Management said current manufacturing capacity is approaching 200,000 units per month for 800G and 1.6-terabit products, up from nearly 100,000 units per month at the end of the first quarter. The company expects capacity to exceed 650,000 units per month by year-end and 930,000 units per month by the end of 2027, with more than half of the latter output expected to come from Texas. Lin and Murry said the company’s in-house laser production is an important advantage as the industry faces supply constraints. They noted that the company has secured substrate supply into next year, while component availability for digital signal processors and transimpedance amplifiers remains a major challenge for higher-speed transceiver production. CATV revenue rose to a record $80.6 million, up 43.8% year over year and 20.6% sequentially. The segment represented 42% of total revenue. The company said it shipped a significant quantity of 1.8 GHz amplifiers to its largest CATV customer and continued to gain traction with newer multiple-system-operator customers. During the quarter, Applied Optoelectronics announced that Mediacom selected it as a primary vendor for DOCSIS 4.0 network upgrades using the company’s 1.8 GHz Quantum Bandwidth smart amplifiers and software solutions. For the third quarter, the company forecast CATV revenue of $100 million to $110 million and reiterated its expectation to generate more than $325 million annually from the CATV business over the longer term. Applied Optoelectronics forecast third-quarter revenue of $255 million to $290 million, which would represent 130% year-over-year growth at the midpoint. It expects non-GAAP gross margin of 29% to 30.5%, non-GAAP net income of $10.1 million to $24 million, and non-GAAP earnings per share of $0.11 to $0.26 based on approximately 92.8 million diluted shares. The company maintained its expectation for approximately $1.1 billion in full-year 2026 revenue, saying the forecast is limited by manufacturing capacity and supply-chain availability rather than demand. Applied Optoelectronics ended the quarter with $508.8 million in cash equivalents, short-term investments and restricted cash, compared with $449.4 million at the end of the first quarter. Inventory increased to $278.8 million from $206.2 million as the company accumulated raw materials to support capacity expansion. The company made $565.5 million in capital investments during the quarter, including $280 million in equipment prepayments. It said spending was primarily directed toward manufacturing capacity for 400G, 800G and 1.6-terabit products, and that capital expenditure intensity is expected to rise in the second half of 2026. Applied Optoelectronics, Inc develops and manufactures high-speed fiber-optic networking products designed to support the growing bandwidth demands of data centers, telecommunications carriers and internet content providers. The company's core offerings include pluggable optical transceiver modules, transponders and optical components that enable data transmission at rates ranging from 1G to 400G. These products are used to facilitate long-haul, metro and intra-data center connectivity, addressing the need for scalable, low-latency and energy-efficient solutions in modern network infrastructures. The company's product portfolio spans small-form factor pluggable modules such as SFP+, QSFP+ and QSFP28 units, as well as more advanced form factors like CFP2 and OSFP for ultra-high-speed applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Applied Optoelectronics Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.