Core Viewpoint - Applied Optoelectronics reported third quarter earnings that met estimates, but revenue guidance for the upcoming quarter fell short of expectations, leading to a decline in stock price [1][2][3]. Financial Performance - For Q3, Applied Optoelectronics reported an adjusted loss of $0.09 per share, compared to a loss of $0.21 per share a year earlier, while revenue increased by 82% to $118.6 million, slightly below the analyst estimate of $119.8 million [2]. - The company provided revenue guidance for Q4 in the range of $125 million to $140 million, which is below the analyst estimate of $144.6 million [3]. Market Dynamics - The Q4 outlook indicates a slowdown in cable business to absorb Q3 shipments, but a significant increase in data center revenue is expected, including $6.6 million of 400G products that were delayed from Q3 [4]. - New data center customers include major players like Microsoft, Amazon, and Oracle, although key part shipments lagged in Q3 due to various delays [5]. Production Capacity - The company is making progress in increasing production capacity in both the U.S. and Taiwan, with expectations to exit the year with a production capacity of around 100,000 units of 800G transceivers per month, with approximately 35% of this production occurring in the U.S. [6]. Stock Performance - Following the earnings report, Applied Optoelectronics stock fell nearly 13% to $25.40, with shares having retreated 17% in 2025 prior to the report [6]. - The stock holds an Accumulation/Distribution Rating of C-minus, indicating neutral activity, and an IBD Composite Rating of 84 out of a best-possible 99 [7][8].