Is Applied Optoelectronics Inc (AAOI) a risky stock?
As of July 27, 2026, Clavix grades Applied Optoelectronics Inc (AAOI) F for risk, a composite score of 36 out of 100 on an A+ to F scale, which puts AAOI in the "elevated risk" band. The grade is a risk read for educational purposes, not a buy or sell recommendation.
Grade as of July 27, 2026. Clavix regrades every trading day.
AAOI price, last 3 months
AAOI's daily closes over the past three months. Clavix reads risk from the fundamentals and news behind the price, not the line itself.
The five risk dimensions behind AAOI's grade
Each Clavix grade is a composite of five independent reads. Higher is safer. Here is how AAOI scores on each, as of July 27, 2026.
What's moving AAOI's risk right now
Company-specific signals Clavix flags behind AAOI's current grade, drawn from recent news and filings as of July 27, 2026.
Shares of Applied Optoelectronics climbed 15.8% before its earnings report, while hedge fund holdings in the stock more than tripled. The buying reflects bets on AI-driven transceiver demand, though the stock's high valuation makes it sensitive to any earnings miss.
Strong AI-driven demand is lifting AAOI's near-term revenue outlook, but more competitors entering optical networking could squeeze margins. The company is expanding its U.S. manufacturing to try to stand out.
Needham lowered its price target for Applied Optoelectronics, signaling it sees less upside ahead. The rating still rates the stock a Buy, suggesting they think it can climb toward the new, lower target.
Recent AAOI news
The latest headlines Clavix ingested for Applied Optoelectronics Inc, newest first. These feed the news-sentiment dimension of AAOI's grade.
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Needham & Company LLC cut its price target on Applied Optoelectronics (NASDAQ:AAOI) from $260.00 to $220.00 while maintaining a 'buy' rating, indicating reduced but still positive upside expectations for the semiconductor stock.
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Needham & Company LLC lowered its price target on Applied Optoelectronics (AAOI) from $260 to $220, though it maintained a 'buy' rating on the stock.
What a F grade means
On the Clavix A+ to F scale, AAOI's composite of 36 falls in the D band (35–49), read as "elevated risk." The scale is fixed, so the meaning never moves.
This page is generated from Clavix's own risk model and is for educational purposes only. It is not investment advice or a recommendation to buy or sell AAOI or any security. Grades are risk indicators, not predictions of return. Data may be delayed.