$Applied Optoelectronics(AAOI.US) looks very undervalued at $6.49B.
If we model ASP and their newest capacity projections today:Revenue from Capacity: Q2 2026: ~$312.1MQ4 2026: ~$1.41B Q2-2027: ~$1.53BQ4-2027: ~$1.97BThis is absurd ramp (off ~34-40% est. gross margins). ASP modeled off (LightCounting, Dell'Oro Group & Yole, pricing for ELSFP modules is the most speculative). And some sell-side models (from firms like Raymond James, B. Riley, Northland Capital, and Goldman Sachs).Exact contract pricing for massive volume orders is not known, so this is speculative. But the Q2 volume * ASP estimates actually align with their $378M/month target Q2-2027. Again, you might be wondering? This is capacity, doesn't translate into revenue right? Hyperscalers from $Amazon(AMZN.US) to $Microsoft(MSFT.US) are buying any capacity any of these companies from $Lumentum(LITE.US) to $Coherent Corp.(COHR.US) can make, years out. This includes $Applied Optoelectronics(AAOI.US) from their former earnings call.Source: Serenity
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