Applied Optoelectronics (AAOI) has seen its stock price decline by 46.3% over the past three months, underperforming both the Zacks Computer & Technology sector, which gained 0.6%, and the Zacks Electronics – Semiconductors industry, which fell by 14.5%. Despite this, the company has reported that its 800G optical transceiver revenues reached $12.8 million in Q2 of 2026, making up 11.9% of total data center revenues and showing a tenfold increase year-over-year.
AAOI forecasts significant growth in 800G product revenues, expecting them to nearly quintuple sequentially in Q3 2026, thanks to the surging demand driven by AI infrastructure investments. However, challenges such as production constraints and supply chain issues are limiting its ability to meet this demand.
For Q3 2026, AAOI anticipates revenues between $255 million and $290 million, with a consensus estimate of $269.15 million indicating a 126.88% year-over-year growth. Non-GAAP earnings are expected to range from 11 to 26 cents per share, with the consensus pegged at 14 cents per share—an increase of 255.56% year-over-year.
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