NEW YORK, January 2, 2026, 12:45 ET — Regular session
- Applied Optoelectronics (AAOI) rose about 13% to $39.55 in midday trading, after a prior close of $34.86.
- Short interest stands near 12.7 million shares — roughly one-fifth of the tradable float — keeping “short squeeze” risk in play. 1
- Investors are watching for the next earnings update (estimated Feb. 25) and the next FINRA short-interest publication (Jan. 12). 2
Applied Optoelectronics Inc shares rose about 13% on Friday, trading at $39.55 after touching $39.58 earlier in the session. The Nasdaq-listed stock last closed at $34.86.
The outsized move matters because AAOI has become a high-beta proxy for demand for faster optical links inside AI data centers and cable networks. Beta — a measure of how much a stock tends to move versus the overall market — sits at 3.25 on Finviz’s data. 3
Short interest, or borrowed shares sold by investors betting the price will fall, remains elevated. About 12.7 million shares were sold short as of Dec. 15, roughly one-fifth of the stock’s free float — shares available for trading — according to MarketBeat and Finviz. 1
High short interest can amplify rallies when short sellers buy back stock to close positions, a dynamic known as a short squeeze.
Other optical and networking names climbed alongside AAOI, with Lumentum, Coherent and Ciena up around 3% to 4%.
U.S. stocks were mixed in the first trading day of 2026, with semiconductor strength helping the Nasdaq hold near flat, Reuters reported. 4
Applied Optoelectronics last reported quarterly results on Nov. 6, when it posted revenue of $118.6 million, including $70.6 million from CATV products and $43.9 million from data-center gear. CATV refers to cable-television equipment, while HFC is “hybrid fiber‑coax,” a common cable‑broadband architecture. 5
For the December quarter, the company forecast revenue of $125 million to $140 million and a non‑GAAP gross margin of 29% to 31%. Non‑GAAP results strip out certain costs such as stock-based compensation; the company also guided to a non‑GAAP loss of 4 to 13 cents a share. 5
CEO Thompson Lin said in that Nov. 6 release the company was “nearing what we believe are the final stages of 800G product qualification with several customers.” 800G stands for 800 gigabits per second, a high-speed standard used in data-center optical transceivers. 5
In December, Applied Optoelectronics said it had received its first volume order for 800G data-center transceivers from a major hyperscale customer and expected the order to contribute $4 million to $8 million to fourth-quarter revenue. Investors are waiting to see how much of that demand shows up in data-center revenue when the company reports results.
Analysts remain split on the stock. Rosenblatt Securities raised its price target to $50 in mid-December while keeping a buy rating, while B. Riley reiterated a sell rating with a $15 target, according to Investing.com and MarketBeat compilations. 6
MarketBeat estimates Applied Optoelectronics will report next around Feb. 25 after the close, though the company has not confirmed a date. Traders are also watching for the next short-interest update; FINRA’s schedule shows the report for the Dec. 31 settlement date is due for publication on Jan. 12. 2
