AAOI Stock: Insider Activity, Filings & Research

Applied Optoelectronics, Inc. (AAOI) — Drillr’s hub for AAOI insider activity, SEC filings, earnings signals and AI research. Over the trailing 3 months, AAOI insiders filed 0 open-market buys and 15 sales (SEC Form 4).

Sentiment

0/100

Buys (3m)

Sells (3m)

Net (3m)

-$59.5M

Insider trades by month Buys Sells

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Jun

Context3-month price +84.6%Institutions accumulating (13F)

Date	Insider	Type	Shares	Price
Jun 4, 2026	Chen Min-Chu (Mike)director	Sell	8,247	$201.00
May 28, 2026	DeLaney Cynthiadirector	Sell	56,575	$189.23
May 19, 2026	Murry Stefan J.officer: Chief Financial Officer	Tax	30,330	$190.36
May 19, 2026	Lin Chih-Hsiang (Thompson)director, officer: President and CEO	Grant	711,743	—
May 19, 2026	Lin Chih-Hsiang (Thompson)director, officer: President and CEO	Tax	86,655	$190.36
May 19, 2026	Kuo David Cofficer: *** See Remarks	Sell	19,227	$173.26
May 19, 2026	Chang Hung-Lun (Fred)officer: *** See Remarks	Grant	224,199	—
May 19, 2026	Murry Stefan J.officer: Chief Financial Officer	Grant	249,110	—
May 19, 2026	Murry Stefan J.officer: Chief Financial Officer	Sell	33,000	$173.26
May 19, 2026	Kuo David Cofficer: *** See Remarks	Grant	156,583	—
May 19, 2026	Chang Hung-Lun (Fred)officer: *** See Remarks	Tax	27,297	$190.36
May 19, 2026	Yeh Shu-Hua (Joshua)officer: *** See Remarks	Sell	39,154	$173.26
May 19, 2026	Yeh Shu-Hua (Joshua)officer: *** See Remarks	Grant	192,170	—
May 19, 2026	Yeh Shu-Hua (Joshua)officer: *** See Remarks	Tax	7,928	$190.36
May 19, 2026	Lin Chih-Hsiang (Thompson)director, officer: President and CEO	Sell	58,000	$173.26

Source: AAOI SEC Form 4 filings, latest Jun 4, 2026. For informational purposes only — not investment advice.

Overview

Applied Optoelectronics, Inc. (NASDAQ:AAOI) is a Texas-based designer and manufacturer of fiber-optic networking products founded in 1997 and publicly traded since 2013. The company specializes in optical modules, lasers, and related equipment that enable high-speed data transmission across internet infrastructure, cable television networks, and telecommunications systems. Headquartered in Sugar Land, Texas, AAOI has manufacturing facilities in both the United States and Taiwan, positioning itself as a domestic supplier of critical optical components during a period of increasing focus on supply chain security and AI-driven data center expansion.

Business

Applied Optoelectronics operates in the fiber-optic networking equipment industry, which provides the essential hardware that enables high-speed data transmission across the internet and telecommunications networks. The company's products are the building blocks that allow data to travel at light speed through fiber-optic cables, converting electrical signals to optical signals and back again. The company operates through three primary business segments: 1. Data Center Products (approximately 44% of revenue): AAOI manufactures optical transceivers - devices that convert electrical data signals into light pulses for transmission over fiber-optic cables. These products include 100G, 200G, 400G, and emerging 800G transceivers used in hyperscale data centers operated by companies like Amazon, Microsoft, and other cloud providers. The "G" refers to gigabits per second of data transmission speed. These transceivers are critical for connecting servers within data centers and linking data centers to each other, enabling everything from cloud computing to artificial intelligence applications. 2. Cable Television (CATV) Products (approximately 52% of revenue): The company produces amplifiers, nodes, and other equipment used by cable operators to deliver television and internet services to homes and businesses. These products are essential for the cable industry's transition to DOCSIS 4.0 technology, which enables faster internet speeds and improved service quality. AAOI's CATV products help cable companies upgrade their networks to compete with fiber-optic internet providers. 3. Telecom and Other Products (approximately 4% of revenue): This smaller segment includes products for telecommunications companies and fiber-to-the-home applications, serving traditional phone companies and internet service providers expanding their fiber networks.

Revenue model

Applied Optoelectronics generates revenue primarily through direct product sales to equipment manufacturers and network operators. The company sells optical transceivers, amplifiers, and related components at fixed prices per unit, with revenue recognition occurring upon product shipment and customer acceptance. The company's customers include hyperscale data center operators (Amazon, Microsoft, Google), cable television equipment manufacturers and operators, and telecommunications equipment companies. AAOI sells both directly to end users like Amazon and through original equipment manufacturers (OEMs) who integrate AAOI's components into their larger networking systems. Several factors significantly impact the company's margins and profitability. Product mix is crucial - higher-speed transceivers (400G, 800G) and CATV products typically carry higher margins than legacy 100G products. Manufacturing scale and efficiency directly affect costs, as the company must balance capacity investments with demand volatility. Competition from Chinese manufacturers pressures pricing, though recent U.S. government restrictions on Chinese suppliers have created opportunities for domestic producers like AAOI. Customer concentration risk exists, as large orders from major hyperscale customers can significantly impact quarterly results. Technology transitions create both opportunities and risks - while new higher-speed products offer better margins, they require substantial R&D investment and carry execution risk. Finally, semiconductor and component supply chain constraints can impact both costs and the ability to fulfill orders, particularly affecting gross margins during periods of component shortages.

Competitive moat

Applied Optoelectronics operates in a moderately competitive industry with limited sustainable competitive advantages. The company's primary moat stems from its domestic manufacturing capability and customer relationships with major hyperscale data center operators, particularly as geopolitical tensions have increased focus on supply chain security. The company's strongest defensive position lies in its U.S.-based production facilities, which have become increasingly valuable as customers seek alternatives to Chinese suppliers amid trade restrictions and national security concerns. This "friend-shoring" trend has helped AAOI secure design wins and long-term supply agreements with major customers like Amazon and Microsoft. Additionally, the company has built engineering relationships and co-development partnerships with these hyperscale customers, creating some switching costs and technical barriers for competitors. However, AAOI's moat is relatively narrow and faces significant competitive pressures. The optical transceiver industry includes numerous well-funded competitors, including larger companies with greater scale advantages and Chinese manufacturers with lower cost structures. Technology differentiation is limited - while AAOI has engineering expertise, the underlying optical technologies are increasingly commoditized, and customers often qualify multiple suppliers for the same products. The company lacks the scale advantages of larger competitors like Broadcom or Marvell, making it vulnerable to pricing pressure and limiting its ability to invest in R&D at the same level. The most significant competitive threat comes from potential re-entry of Chinese suppliers if trade tensions ease, as they typically offer lower prices due to lower labor costs and government subsidies. Additionally, vertical integration by large customers represents a long-term risk, as companies like Amazon and Google have the resources to develop their own optical components internally, potentially eliminating the need for suppliers like AAOI entirely.

Risks & safety

Applied Optoelectronics presents moderate financial risk with improving but still concerning cash flow dynamics and reasonable debt levels. • Cash and Liquidity: $51.1 million cash, recently raised $98 million through equity offering, providing near-term liquidity cushion despite negative operating cash flows • Cash Burn: Operating cash flow of -$50.9 million in Q1 2025, free cash flow of -$79.3 million due to significant capital expenditures for capacity expansion • Debt Position: Debt-to-equity ratio of 0.53, manageable debt levels with current ratio of 1.88 • Solvency Risk: Moderate concern given cash burn rate, though recent equity raise provides runway through capacity expansion phase • Valuation Metrics: Trading at 2.5x book value, negative P/E due to losses, EV/EBITDA not meaningful due to negative EBITDA • Other Considerations: Customer concentration risk with Amazon representing potentially large portion of future revenue, cyclical industry with lumpy order patterns, capital-intensive expansion phase requiring continued investment

Recent development

Over the past two years, Applied Optoelectronics has undergone a significant strategic transformation focused on domestic manufacturing and next-generation product development. The company has shifted from primarily serving the cable television market to becoming a strategic supplier of optical transceivers for AI-driven data center applications. The most significant development has been securing major supply agreements with hyperscale data center operators, particularly Amazon and Microsoft. The Amazon relationship represents a potential $300+ million revenue opportunity, with AAOI positioned to capture 30-40% of Amazon's transceiver requirements. These partnerships have driven the company's aggressive capacity expansion, with plans to increase production from current levels to 120,000-140,000 single-mode transceivers monthly by year-end 2025. AAOI has made substantial investments in manufacturing infrastructure, including retrofitting its Sugar Land, Texas facility and leasing additional space in Taiwan. The company is investing $120-150 million in capital expenditures during 2025 to support this expansion, representing one of the largest capacity buildouts in its history. On the product development front, the company has successfully transitioned from 100G to 400G transceivers and is now preparing for 800G product launches in the second half of 2025. The 800G products represent a significant technological advancement and are expected to carry higher margins due to their complexity and performance requirements. AAOI is also developing 1.6 terabit products for future deployment. The cable television business has experienced a renaissance with the industry's transition to DOCSIS 4.0 technology. After several years of declining CATV revenue, this segment achieved record quarterly revenue of $64.5 million in Q1 2025, representing a six-fold year-over-year increase as cable operators upgrade their networks for higher-speed internet services.

AAOI company profile · for informational purposes only — not investment advice.

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