<div id="readability-page-1"><ul><li>3 Under-the-Radar Stocks Set to Benefit From Oracle’s Boom</li></ul><p>Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) - Investment analysts at Northland Capmk increased their Q2 2026 earnings per share (EPS) estimates for shares of Applied Optoelectronics in a research report issued to clients and investors on Monday, December 22nd. Northland Capmk analyst T. Savageaux now expects that the semiconductor company will earn $0.08 per share for the quarter, up from their prior estimate of ($0.01). The consensus estimate for Applied Optoelectronics' current full-year earnings is ($1.18) per share. Northland Capmk also issued estimates for Applied Optoelectronics' Q3 2026 earnings at $0.21 EPS, Q4 2026 earnings at $0.29 EPS and FY2026 earnings at $0.74 EPS.</p><p>Several other brokerages have also issued reports on AAOI. Northland Securities  set a $45.00 price target on shares of Applied Optoelectronics in a research note on Thursday, December 11th. B. Riley  reaffirmed a &#34;sell&#34; rating and set a $15.00 target price on shares of Applied Optoelectronics in a research note on Monday, November 10th. Needham &amp; Company LLC lifted their target price on shares of Applied Optoelectronics from $38.00 to $43.00 and gave the company a &#34;buy&#34; rating in a report on Thursday, December 11th. Rosenblatt Securities  restated a &#34;buy&#34; rating and issued a $50.00 price target on shares of Applied Optoelectronics in a research note on Friday, December 19th. Finally, Weiss Ratings  reiterated a &#34;sell (d-)&#34; rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating, one  has issued  a Hold rating and two have assigned  a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of &#34;Hold&#34; and an average target price of $35.60.</p><ul><li>Applied Optoelectronics earnings dumper, pain now for gain later?</li></ul><p><b>Get Our Latest Research Report on AAOI</b></p><h2>Applied Optoelectronics Stock Performance</h2><p>Shares of Applied Optoelectronics stock opened at $40.64 on Wednesday. Applied Optoelectronics has a 12 month low of $9.71 and a 12 month high of $41.96. The firm has a market capitalization of $2.77 billion, a P/E ratio of -12.62 and a beta of 3.25. The company has a current ratio of 2.31, a quick ratio of 1.63 and a debt-to-equity ratio of 0.23. The business has a fifty day simple moving average of $29.04 and a two-hundred day simple moving average of $26.55. </p><ul><li>Is the Microsoft Deal Driving Applied Optoelectronics 300% Gain?</li></ul><p>Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last released its earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) EPS for the quarter, beating analysts' consensus estimates of ($0.10) by $0.01. The company had revenue of $118.63 million during the quarter, compared to analysts' expectations of $119.77 million. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%.The firm's revenue for the quarter was up 82.1% compared to the same quarter last year. During the same quarter last year, the business posted ($0.21) EPS. Applied Optoelectronics has set its Q4 2025 guidance at -0.130--0.040 EPS. </p><h2>Hedge Funds Weigh In On Applied Optoelectronics</h2><p>Hedge funds have recently added to or reduced their stakes in the company. CloudAlpha Capital Management Limited Hong Kong increased its holdings in shares of  Applied Optoelectronics by 410.7% in the 2nd quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company's stock worth $36,197,000 after purchasing an additional 1,133,115 shares in the last quarter.  Chung Wu Investment Group LLC purchased a new stake in shares of  Applied Optoelectronics during the second quarter valued at $344,000.  Swiss National Bank increased its holdings in  Applied Optoelectronics by 15.4% in the 1st quarter. Swiss National Bank now owns 88,200 shares of the semiconductor company's stock worth $1,354,000 after buying an additional 11,800 shares in the last quarter.  Sovereign Financial Group Inc. purchased a new position in  Applied Optoelectronics in the 2nd quarter worth about $287,000.  Finally, Allspring Global Investments Holdings LLC bought a new position in  Applied Optoelectronics during the 2nd quarter valued at about $7,201,000. 61.70% of the stock is currently owned by hedge funds and other institutional investors. </p><h2>Key Applied Optoelectronics News</h2><p>Here are the key news stories impacting Applied Optoelectronics this week:</p><ul>   <li><span>Positive Sentiment: </span>Northland Capital Markets sharply raised its 2026 outlook — boosting Q2 to $0.08 (from -$0.01), Q3 to $0.21 (from $0.10), Q4 to $0.29 (from $0.13) and lifting FY2026 to $0.74 (from $0.39). The upgrades signal expectations for materially stronger profitability next year and are a primary driver of the rally. </li>    <li><span>Positive Sentiment: </span>Investors are bidding the stock up after news AAOI unveiled a new pump laser positioned for AI and data-center optics, which traders say explains a recent sharp intraday move and growing buy interest. <i></i><span>Applied Optoelectronics (AAOI) Soars 24.8% on New Pump Laser for AI</span></li>    <li><span>Positive Sentiment: </span>Street coverage turned more constructive — a published price target was raised about 15.5% to $38.08, adding validation for higher near-term upside and supporting the buying momentum. <i></i><span>Applied Optoelectronics (AAOI) price target increased by 15.46% to 38.08</span></li>    <li><span>Positive Sentiment: </span>Technical/market-momentum signals are supportive — AAOI cleared a key benchmark and hit a 90+ Relative Strength rating, often a magnet for momentum-focused funds and retail flows. <i></i><span>Applied Optoelectronics clears key benchmark, hitting 90-plus RS rating</span></li>    <li><span>Neutral Sentiment: </span>Coverage and commentary pieces (including a market write-up and a stock video breakdown) are amplifying awareness and may sustain trading volume; these pieces explain the move but don't add new fundamentals. <i></i><span>Why Applied Optoelectronics, Inc.’s (AAOI) Stock Is Up 5.86%</span> <i></i><span>Overlooked Stock: Applied Optoelectronics</span></li> </ul><h2>About Applied Optoelectronics</h2> (Get Free Report)<p>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.  </p><p>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.</p><h2>Further Reading</h2><ul><li>Five stocks we like better than Applied Optoelectronics</li><li>The boring AI play that could pay up to $4,290 monthly</li><li>Trump’s “real estate deal for America” explained</li><li>Trump Did WHAT??</li><li>A month before the crash</li><li>Put $1,000 into this stock by Jan 1 [Not NVDA]</li></ul> <p><em>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 contact@marketbeat.com.</em></p><h2>Should You Invest $1,000 in Applied Optoelectronics Right Now?</h2><p>Before you consider Applied Optoelectronics, you'll want to hear this.</p><p>MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Applied Optoelectronics wasn't on the list.</p><p>While Applied Optoelectronics currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.</p><p>View The Five Stocks Here</p>                  </div>

AAOI

<p>Northland Capmk analysts raised their Q2 2026 EPS estimates for Applied Optoelectronics from -$0.01 to $0.08. They also increased Q3 2026 EPS to $0.21, Q4 2026 EPS to $0.29, and FY2026 EPS to $0.74. The stock has a consensus rating of 'Hold' with an average target price of $35.60. Applied Optoelectronics' stock opened at $40.64, with a market cap of $2.77 billion.</p>

Northland Capmk Brokers Raise Earnings Estimates for AAOI