Applied Optoelectronics (AAOI) Soars 22% as Earnings Loom

Core Viewpoint - Applied Optoelectronics Inc. (NASDAQ:AAOI) has shown significant performance, with a 22.09% increase week-on-week, reaching an all-time high due to strong investor confidence ahead of its earnings report for full-year 2025 [1]. Financial Performance Expectations - For the upcoming quarter, Applied Optoelectronics is targeting revenues between $125 million and $140 million, representing an implied growth of 25% to 40% compared to $100 million in the same quarter of 2024 [3]. - The company aims to narrow its net loss to a range of $2.8 million to $9 million, a significant improvement from a net loss of $119.7 million in the same period a year earlier [3]. Industry Insights - Zacks Research has provided optimistic coverage on Applied Optoelectronics, highlighting that its laser transceivers are essential for the AI revolution by overcoming the limitations of traditional copper cables, thus facilitating the necessary low-latency data flow for large AI models [4]. - The rising prices of copper enhance the value of fiber optic cables produced by Applied Optoelectronics, making them increasingly relevant in the current market [4].