Applied Optoelectronics (AAOI)
Applied Optoelectronics (AAOI) designs and builds the optical transceivers that link servers and switches inside data centers, plus a cable-TV broadband business. In ETFpedia it represents the Optical Networking & Photonics concept, because its data-center segment more than doubled in the first quarter of 2026 as a hyperscaler ramped 800G orders.
| Ticker | AAOI |
|---|---|
| Exchange | NASDAQ |
| Sector | Technology · Optical Components |
| Country | United States |
| Held by ETF | KODEX US AI Optical Communication Network ETF (0173Y0) |
| Last updated | 2026-06-04 |
Next event:Next earnings · Q2 2026, estimated · Date is analyst-estimated (providers range late July to early August); confirm on AAOI IR. Last report: Q1 2026 on 2026-05-07. (source)
Latest reported quarter:Q1 2026 (ended Mar 31, 2026) (reported2026-05-07)
Applied Optoelectronics reported record revenue of $151.1 million, up 51% year over year, as its datacenter segment more than doubled on 800G demand; the company was still posting a small net loss.
| Revenue | $151.1M+51%YoY · record |
|---|---|
| Non-GAAP EPS | -$0.07 |
| GAAP EPS | -$0.19 |
| Non-GAAP gross margin | 29.2% |
| Datacenter revenue | $81.4M · 54% of total, +154% YoY |
Revenue by segment
| Datacenter | $81.4M · ~54%of revenue+154% YoY |
|---|---|
| CATV / Broadband | $66.8M · ~44%of revenue |
| Telecom | $2.6M · ~2%of revenue |
Guidance:Q2 2026
| Revenue | $180M–$198M |
|---|---|
| Non-GAAP gross margin | 29%–30% |
| Non-GAAP EPS | -$0.03 to +$0.03 |
Recent & upcoming events
- · First 800G volume order.First volume 800G order from a major hyperscale customer, the start of a datacenter ramp. (source)
- · Upsized $71M 800G order.A major hyperscaler upsized its 800G order, bringing cumulative purchases to about $124M since mid-March. (source)
- · Record Q1 2026 revenue.Revenue $151.1M (+51%), with the first 800G volume shipment to a large hyperscale customer. (source)
AAOI was still posting GAAP and non-GAAP net losses in Q1 2026 despite record revenue; the hyperscale customer's identity is not disclosed.
Figures are as of 2026-06-03 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does Applied Optoelectronics do?
AAOI designs and manufactures optical transceivers and components for hyperscale data centers, 400G and 800G today, with 1.6T in development, and runs a separate CATV/broadband access business. It is vertically integrated, making its own lasers through to finished modules, which it argues helps it scale supply. Datacenter was about 54% of Q1 2026 revenue (AAOI 8-K, May 7, 2026).
How is AI driving AAOI’s business?
A single large hyperscaler turned AAOI’s datacenter line from a laggard into its growth engine. Datacenter revenue grew 154% year over year in Q1 2026, and in April 2026 that customer upsized an 800G order to $71 million, bringing cumulative purchases to about $124 million in weeks (AAOI, Apr 2, 2026).
We continue to see strong customer engagement around our 800G transceivers and 1.6 Tb products.
— Dr. Thompson Lin, Founder, President & CEO, Applied Optoelectronics (Q1 2026 results)
What did AAOI report most recently?
In Q1 2026 (the quarter ended March 31, 2026), AAOI reported record revenue of $151.1 million, up 51% year over year (from $99.9 million), with non-GAAP gross margin of 29.2% (AAOI 8-K). It was its fourth consecutive record quarter, and it exited Q1 with 800G manufacturing capacity of nearly 100,000 units per month. It was still a small net loss, with non-GAAP EPS of -$0.07, the usual pattern for a company scaling a new ramp.
What is AAOI’s guidance?
For Q2 2026, AAOI guided revenue to $180–198 million and non-GAAP EPS to a range of -$0.03 to +$0.03, near breakeven, with non-GAAP gross margin of 29–30% (AAOI).
Why is AAOI part of optical networking?
AAOI is one of the smaller, higher-beta names in the Optical Networking & Photonics theme: a direct datacenter-transceiver supplier whose fortunes swing on hyperscaler order timing. The 800G ramp is its proof point that it can win volume in the AI cycle.
What are the risks for AAOI?
- Still unprofitable. Despite record revenue, AAOI posted net losses in Q1 2026 on thin (~29%) gross margins.
- Customer concentration. A single hyperscaler drives most datacenter orders; slippage or loss would be material.
- Execution. Scaling 800G/1.6T capacity and yields is the gating risk on the guided ramp.
- CATV cyclicality. Its broadband-access business is lumpy and demand-sensitive.
Related securities, concepts & terms
- AI Infrastructureparent
- Optical Networking & Photonicsparent
- Coherent (COHR)sibling
- Fabrinet (FN)sibling
Related indices & ETFs
- KODEX US AI Optical Communication Network ETF (0173Y0) · Samsung Asset Management (KODEX)Korea-listed ETF tracking the Akros U.S. AI Optical index, the AI-optical-networking theme.
Frequently asked questions about Applied Optoelectronics
What does Applied Optoelectronics do?
Applied Optoelectronics designs and manufactures optical transceivers and components for hyperscale data centers (400G, 800G, and developing 1.6T), plus a cable-TV broadband access business. It is vertically integrated from lasers through finished transceiver modules.
When does Applied Optoelectronics report its next earnings?
AAOI is expected to report Q2 2026 results in late July or early August 2026 (estimates differ). The date is not company-confirmed, so check its investor-relations site. It last reported Q1 2026 on May 7, 2026.
What was Applied Optoelectronics' latest quarterly revenue?
AAOI reported record revenue of $151.1 million in Q1 2026 (the quarter ended March 31, 2026), up from $99.9 million a year earlier and $134.3 million in Q4 2025, its fourth consecutive record quarter. Non-GAAP gross margin was 29.2% and non-GAAP EPS was -$0.07, still a small net loss.
How much 800G manufacturing capacity does AAOI have?
AAOI exited Q1 2026 with 800G transceiver manufacturing capacity of nearly 100,000 units per month across its U.S. and Taiwan sites, and said it has roughly doubled its Houston-area footprint via real-estate purchases and leases to support its 800G ramp through 2026.
What is Applied Optoelectronics' guidance?
For Q2 2026, AAOI guided revenue to $180–198 million, non-GAAP gross margin to 29–30%, and non-GAAP EPS to a range of -$0.03 to +$0.03, near breakeven. It expects sequential revenue growth through 2026, with significantly larger growth from Q3 as added capacity comes online.
Why is Applied Optoelectronics an AI optical networking play?
AAOI builds the optical transceivers that link servers and switches inside data centers. Its datacenter segment grew 154% year over year in Q1 2026 to $81.4 million (about 54% of revenue) as a major hyperscaler ramped 800G orders, tying its growth directly to AI capex.
Sources & references
- Applied Optoelectronics reports first quarter 2026 results (SEC 8-K, Exhibit 99.1) · Applied Optoelectronics / SEC EDGAR, 2026-05-07
- AOI Receives New Upsized Order for 800G Data Center Transceivers from Major Hyperscale Customer · Applied Optoelectronics, Inc. / GlobeNewswire, 2026-04-02
- Applied Optoelectronics · investor relations · Applied Optoelectronics, 2026-06-02
- Nasdaq listed company information · AAOI · Nasdaq, 2026-06-02