Share price
$112.85
+4.85% today
Prior close: $107.63
Applied Optoelectronics Shares Gain 5% After Company Launches Third $600 Million ATM Program
SUGAR LAND, Texas, August 25, 2026, 11:06 EDT — Applied Optoelectronics stock rose 5% following the announcement of a third at-the-market equity program that aims to raise up to $600 million.
NASDAQ: AAOI · Stock move
Applied Optoelectronics
Factory expansion is being financed with a third large ATM program.
Market snapshot: August 25, 2026, 11:06 EDT
Regular session open · USD
Regular session open · USD
Monday reaction
−13.77%
14.94M shares traded · Aug. 24 close
Market value
$9.58B
84.91M shares outstanding
New ATM capacity
$600M
6.3% of market value at 11:06 EDT
Offering shock and partial rebound
Price path, Aug. 21–25Tuesday volume: 3.51M at 11:06 EDT
The dilution math
*Illustrative full $600M sale at $112.85. The company controls timing and amount; actual issuance can differ.
Read-through: the new authorization equals roughly 6.3% of current equity value, but follows 7.78M shares already sold through June.
Three ATM programs in 2026
| Program | Authorized | Shares sold through June | Net proceeds |
|---|---|---|---|
| First | $500M | 4.83M | $490.0M |
| Second | $600M | 2.95M | $538.8M |
| August | $600M | Not disclosed | Not disclosed |
| Total | $1.70B | 7.78M+ | $1.03B+ |
Where the money is going
Six months ended June 30, 2026. *Cash, cash equivalents and restricted cash.
Growth versus ramp cost
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $191.9M | $103.0M | +86.4% |
| Gross profit | $53.2M | $31.2M | +70.7% |
| GAAP gross margin | 27.7% | 30.3% | −2.6 pts |
| GAAP net loss | −$22.8M | −$9.1M | Loss widened |
| Non-GAAP EPS | $0.06 | −$0.16 | Turned positive |
Q3 operating test
| Guidance | Low | High | Sequential read |
|---|---|---|---|
| Revenue | $255M | $290M | +33% to +51% |
| Non-GAAP gross margin | 29.0% | 30.5% | Above Q2 GAAP margin |
| Non-GAAP net income | $10.1M | $24.0M | Profit ramp |
| Non-GAAP EPS | $0.11 | $0.26 | 92.8M assumed shares |
Analyst recommendations
| Analyst | Firm | Rating | Target | Target vs $112.85 |
|---|---|---|---|---|
| Michael Genovese | Rosenblatt | Buy | $220 | +94.9% |
| Ryan Koontz | Needham | Buy | $190 | +68.4% |
| Simon Leopold | Raymond James | Buy | $178 | +57.7% |
| Tim Savageaux | Northland | Hold | $120 | +6.3% |
| Dave Kang | B. Riley | Hold | $109 | −3.4% |
Six-analyst consensus: Buy. Average target: $163.40, or 44.8% above the 11:06 EDT quote.
What investors must watch
ATM sale pace800G output1.6T rampGross marginCustomer concentration
Upside case
Added capacity converts strong demand into revenue faster than share issuance expands the base.
Downside case
Ramp costs, deployment delays or lower selling prices weaken returns on newly raised capital.
Applied Optoelectronics Shares Drop 13.8% as $600 Million At-the-Market Offering Requires 20% More Shares
SUGAR LAND, Texas, August 24, 2026, 17:47 CDT - Applied Optoelectronics stock slid 13.8% after the company revealed it will need to issue 20% more shares to support its $600 million at-the-market offering.
NASDAQ: AAOI · Company dashboard
A $600 million ATM resets the dilution equation
Market snapshot: August 24, 2026, 18:44 EDT. Regular-session prices are official 16:00 EDT closes; after-hours figures are separately labelled. Fundamentals use the latest reported quarter or trailing period.
Cash close −13.77%
Cash close
$107.63
Aug. 24, 16:00 EDT
Daily move
−13.77%
−$17.19 per share
After hours
$108.18
+0.51%, 18:44 EDT
Volume
14.99M
Aug. 24 cash session
Market cap
$9.14B
At Aug. 24 close
Forward P/E
46.8×
S&P Global snapshot
Six-session price path
Regular-session closes, August 17–24, 2026. The final gap followed the August 21 ATM filing.
ATM dilution math
Program ceiling$600MGross equity sales; no obligation to use the full amount.
Prospectus illustration4.648M sharesAt $129.10, the August 20 reference price.
At Monday's close5.575M sharesCalculated at $107.63; commissions excluded.
Incremental share need+19.9%5.575M divided by 4.648M, less one.
Post-issue ownership dilution6.2%Full hypothetical sale versus 84.906M existing shares.
The ATM is flexible. A lower sale price raises the share count needed for the same cash; a higher price reduces it.
Fundamentals
| Revenue, Q2 2026 | $191.9M | +86% YoY |
| GAAP net income, Q2 | −$22.8M | Loss |
| Adjusted net income, Q2 | $5.5M | Positive |
| Cash + restricted cash, Jun. 30 | $508.8M | Reported |
| Revenue, trailing 12 months | $596.0M | Aug. 24 snapshot |
| Net income, trailing 12 months | −$57.0M | Loss |
Guidance and Street expectations
Company Q3 guidance was issued August 6, 2026. Full-year revenue and free-cash-flow estimates were last updated August 19, 2026.
Optical-networking peer check · August 24 close, 16:00 EDT
| Company | Close | Day | Forward P/E | Market cap |
|---|---|---|---|---|
| AAOI | $107.63 | −13.77% | 46.8× | $9.14B |
| LITE | $830.17 | −4.22% | 38.4× | $74.47B |
| COHR | $275.49 | −4.85% | 29.3× | $53.95B |
| GLW | $145.55 | −2.86% | 40.5× | $125.38B |
AAOI underperformed the three-peer average decline of 3.98% by 9.79 percentage points.
Analyst map · available before ATM filing
| Firm | View | Target |
|---|---|---|
| Rosenblatt | Buy | $220 |
| Needham | Buy | $190 |
| Raymond James | Outperform | $178 |
| Northland | Market Perform | $120 |
| B. Riley | Neutral | $109 |
Six-analyst consensus: Buy. Average target: $163.40, or 51.8% above the August 24 close. The listed calls date from August 7–19.
AAOI Shares Fall 12% After $600 Million Stock Plan Slashes $1.29 Billion in Value
Shares of Applied Optoelectronics, Inc. dropped 12.1% ahead of Monday’s session after the company announced a new $600 million at-the-market equity offering. At $109.68, the company’s market value was set to decrease by roughly $1.29 billion.
Investor dashboard · NASDAQ: AAOI
$600M stock plan triggers a $1.29B valuation hit
Applied Optoelectronics is funding a fast AI-optics capacity build. Monday’s selloff says investors now need cash conversion to outrun dilution.
U.S. premarket active · price data at August 24, 2026, 05:46 EDT
Premarket price
$109.68
Aug. 24, 05:46 EDT
Premarket move
-12.13%
vs. $124.82 Friday close
Value erased
$1.29B
Preliminary; 84.91M shares
New ATM
$600M
Up to 6.4% share-count expansion at $109.68
Analyst mean
$163.40
+49.0% from premarket
Price path: rally becomes financing discount
Daily closes Monday premarket
Why the stock is down
Recurring equity supplyThe new $600M ATM follows $1.03B of first-half ATM proceeds.
Capital intensityInvesting cash use reached $633.7M in six months. Operations used $73.8M.
Margin proof is pendingQ2 sales rose 86%, but GAAP margin fell 2.6 points and the net loss widened.
Demand remains strongManagement says 800G and 1.6T demand should exceed capacity through mid-2027.
Capital engine: growth is funded before it becomes cash
Dilution arithmetic
| Shares outstanding | 84.91M |
| $600M / $109.68 | 5.47M shares |
| Potential count increase | 6.4% |
| ATM / Friday market cap | 5.7% |
| Value loss / ATM size | 2.14× |
Illustrative only. AOI is not required to sell shares, and actual prices may differ.
Q2 operating scorecard
| Metric | Result |
|---|---|
| Revenue | $191.9M · +86% |
| Data-center sales | $107.7M · +140% |
| GAAP margin | 27.7% · -2.6 pts |
| GAAP net loss | $22.8M |
Premarket peer check
| Stock | Move |
|---|---|
| AAOI | -12.13% |
| COHR | -4.39% |
| LITE | -4.47% |
AAOI’s extra decline isolates the financing catalyst.
Analyst positioning
| Call | Target |
|---|---|
| Rosenblatt · Buy | $220 |
| Needham · Buy | $190 |
| Raymond James · Buy | $178 |
| Northland · Hold | $120 |
| B. Riley · Hold | $109 |
What changes the view
Bull case: faster 800G/1.6T shipments, Q3 revenue above $290M and margin recovery make the factory build self-funding. Bear case: ATM sales arrive before cash conversion, while customer concentration, component constraints or weaker orders keep margins below plan.
Applied Optoelectronics’ $600 Million ATM Matches Twice the Q3 Revenue Midpoint
Applied Optoelectronics, Inc. has launched a potential $600 million stock offering, adding to market supply as investors adjust expectations following its recent growth. The optical-networking firm submitted the filing after market close on Friday. Shares may be sold through Raymond James and Needham, though the company is not obligated to proceed.
NASDAQ: AAOI · Investor dashboard
Capital for capacity.
Supply for the stock.
Supply for the stock.
Applied Optoelectronics · weekend briefing · August 22, 2026
$124.82−3.32% Friday · $112.56 after hours
Regular close 16:00 EDT; extended-hours indication 18:25 EDT, Aug. 21
New ATM capacity
$600M
No obligation to sell. Up to 2% agent commission.
Potential new supply
5.7%
At Friday's close; about 4.81M shares.
Q3 revenue midpoint
$272.5M
Guidance range: $255M–$290M.
Analyst consensus
Buy
Average target $163.40; 30.9% above Friday.
One-week repricing
−16.95% from Aug. 14 to Aug. 21; after-hours trading indicated another 9.83% decline.
ATM scale vs. the business
| Reference | Amount | ATM multiple |
|---|---|---|
| Cash + restricted cash | $508.8M | 1.18× |
| Q3 revenue midpoint | $272.5M | 2.20× |
| H1 capex | $335.1M | 1.79× |
| H1 investing cash use | $633.7M | 0.95× |
Revenue acceleration
+42.0%
Q3 midpoint versus Q2 revenue.
| Q2 actual | $191.9M |
| Q3 low | $255.0M |
| Q3 midpoint | $272.5M |
| Q3 high | $290.0M |
Share-supply sensitivity
| Sale price | New shares | Dilution |
|---|---|---|
| $129.10 | 4.65M | 5.47% |
| $124.82 | 4.81M | 5.66% |
| $112.56 | 5.33M | 6.28% |
Assumes all $600M is sold; excludes fees.
Street distribution
1 Strong Buy 2 Buy
3 Hold 0 Sell
| Low target | $109 |
| Average | $163.40 |
| Median | $178 |
| High | $220 |
Investor read-through
The ATM can finance a capacity bottleneck without forcing an immediate sale.
Management says demand should outpace production through mid-2027. The trade-off is a flexible equity overhang equal to roughly 5.5%–6.3% of current shares at observed prices.
What to watch next
1. Any ATM issuance disclosure
2. 800G/1.6Tb unit ramp
3. Gross-margin recovery
4. Cash use and customer concentration
2. 800G/1.6Tb unit ramp
3. Gross-margin recovery
4. Cash use and customer concentration
Sources: Applied Optoelectronics Aug. 21, 2026 Form 8-K and prospectus supplement; Aug. 6 second-quarter release; StockAnalysis analyst consensus; Benzinga target history; Stocknear price history. Market data are dated and time-stamped above. Extended-hours prices may be volatile and are not official closing prices.
Applied Optoelectronics Shares Fall in Late Trading as Company Launches $600 Million ATM to Expand Fundraising
Shares of Applied Optoelectronics, Inc. fell 10.2% to $112.11 in late Friday trade. The decline came after the company announced a new $600 million at-the-market stock offering following the market close.
NASDAQ: AAOI · Investor snapshot
Fresh $600M ATM meets a fragile tape
Applied Optoelectronics, Inc. · U.S. market closed Friday, August 21, 2026
AFTER HOURS · 6:25 p.m. EDT
Regular close
$124.82
-3.32% Friday
Closed August 21 at 4:00 p.m. EDT.
After hours
$112.56
-9.83% vs. close
Nasdaq last sale at 6:25 p.m. EDT. Extended-hours prices can be thin.
New ATM capacity
$600M
Raymond James and Needham may sell shares over time. AOI is not required to use it.
2% sales commissionImplied share supply
4.81M
At Friday's close, equal to 5.7% of the 84.91 million shares outstanding on August 20.
Six-session price path
-16.9%Aug. 14 close to Aug. 21 close
$154.89Week's highest close
$109Lowest analyst target
Aug 14Aug 17Aug 18Aug 19Aug 20Aug 21
Why the equity matters
Gross ATM sales since March, before new program$1.10B
Cash + restricted cash, June 30$508.8M
First-half capital expenditure$335.1M
First-half investing cash use$633.7M
First-half operating cash use$73.8M
The balance sheet is liquid, but capacity expansion consumes cash quickly. The new authorization is 1.18× June cash plus restricted cash.
Q3 revenue bridge
Midpoint implies 42.0% sequential growth. Management says demand may exceed capacity through mid-2027.
Analyst target spread
Consensus: Buy from six analysts. Three were Holds. Targets were last updated before the ATM filing.
Prospectus math
Assumed offering price$129.10
Historical tangible book value$19.72/share
Adjusted book value after full raise$26.20/share
Illustrated buyer dilution$102.90/share
The SEC illustration is mechanical, not a forecast. Actual prices and issued shares will vary.
Monday setup
Growth case
Equity funds the 800G and 1.6T ramp. Q3 revenue reaches or exceeds the $272.5 million midpoint.
Base case
AOI sells gradually. Investors weigh added capacity against a persistent supply overhang.
Risk case
Weak pricing forces more shares into the market while production delays or customer timing slow the ramp.
Sources: August 21 Form 8-K, prospectus supplement, Q2 Form 10-Q, company Q2 release, S&P Global analyst data via StockAnalysis, and Nasdaq market data. Calculations use displayed figures and may differ due to rounding.
Risk watch: share issuance pace · capacity execution · customer concentration · margin mixMarket snapshot: August 21, 2026, 6:25 p.m. EDT
Applied Optoelectronics (NASDAQ:AAOI) surges 14% premarket as production boosts lead margin gains
Shares of Applied Optoelectronics jumped ahead of Friday’s session after the firm forecast another significant increase in revenue. The company’s executives attributed the guidance to greater output of 800G and 1.6-terabit optical products.
Applied Optoelectronics Q2 Revenue Soars 86%, While Dilution and Margin Pressure Challenge Shares
Shares in Applied Optoelectronics fluctuated following Thursday’s earnings report. The stock dropped 7.5% at first, but recovered to trade up 1.3% as of 17:10 EDT. Applied Optoelectronics ended the regular session at $124.22, marking a decline of about 3.7%.
Applied Optoelectronics (NASDAQ:AAOI) Soars, Points to $1.8 Billion Added Value Ahead of Q2 Review
Applied Optoelectronics shares looked poised to build on Monday’s strong gains in early trade Tuesday. The stock was indicated at $116.34 premarket, ahead 5.6%. On Monday, shares closed at $110.21 after rising 16.9%.
Applied Optoelectronics (NASDAQ:AAOI) falls after $94M Houston cleanroom raises cash concerns
Applied Optoelectronics, Inc. shares dropped Thursday. The move followed a fresh filing detailing a $94.1 million spend for a Houston cleanroom, with substantial completion scheduled by Jan. 10, 2027.
Applied Optoelectronics (NASDAQ:AAOI) rises as investors look past tech selloff to AI optics capacity clue
Applied Optoelectronics shares rose on Monday as investors bought back into one of the year’s most volatile AI-infrastructure names, even as the broader technology tape weakened. Applied Optoelectronics traded at $174.41, up $12.56, with volume above 10.5 million shares in afternoon dealings.
Applied Optoelectronics stock slips into holiday weekend as AI optics trade cools
Applied Optoelectronics shares head into the week ahead on the back foot after a sharp reversal in a holiday-shortened U.S. trading week, with investors reassessing one of the year’s hottest AI-infrastructure optics trades.
Coherent Stock Is Surging Again — Here’s Why Wall Street Is Chasing AI’s Hidden Bottleneck
Coherent Corp. shares jumped about 17% in Tuesday midday trading, putting the photonics and optical-networking supplier back at the center of Wall Street’s AI infrastructure trade. The stock was last quoted at $425.44, up $62.54, after touching $433.12 earlier in the session.
Lumentum’s AI Optics Rally Crushed Nvidia’s—Now Comes the Hard Part
Lumentum Holdings shares fell on Friday, cooling a run that has made the San Jose optical-networking supplier one of the more closely watched AI infrastructure trades outside semiconductors.
Applied Optoelectronics Stock Slides After Q1 Revenue Miss: AI Optics Boom Faces Wall Street Test
Shares of Applied Optoelectronics dropped over 10% in early after-hours moves Thursday, as the optical-networking firm turned in first-quarter revenue and a second-quarter forecast that both missed analyst expectations—taking some air out of what’s been a popular AI-infrastructure play. Still, revenue increased 51% from the prior year, coming in at $151.1 million.
Applied Optoelectronics Stock Jumps 17%: Why AAOI’s AI Optics Rally Faces a May Test
Shares of Applied Optoelectronics surged 17.7% Friday, as the optical networking name kept riding a hot AI-infrastructure wave ahead of its upcoming first-quarter earnings report. The stock finished the session at $162.17, with volume hitting roughly 13.9 million shares.
AAOI stock price rises as Applied Optoelectronics director signals share sale, optics trade stays jittery
Applied Optoelectronics shares were up 2.9% at $98.07 Wednesday afternoon, having bounced between $92.34 and $102.43. Roughly 8.5 million shares traded hands—volume was robust.
AAOI stock drops after early slide: what Applied Optoelectronics investors are watching next
Shares of Applied Optoelectronics, Inc. dropped 6.4% to $95.91 as of 1:39 p.m. EST Tuesday, having touched a session low of $86.06 earlier, with the high for the day reaching $97.58.
AAOI stock jumps again before the bell as Applied Optoelectronics rally rolls on
Applied Optoelectronics, Inc. shares were up 15.6% at $97.40 in premarket trading on Monday, building on Friday’s 56.9% surge that left the stock at $84.23.
AAOI stock jumped 57% on earnings and outlook — here’s what matters before Monday trade
Applied Optoelectronics shares finished Friday’s regular session up a hefty 56.9%, ending at $84.23 after a burst of trading sent volume soaring. In after-hours action, the stock was recently quoted at $88.68.
AAOI stock surges 57% after Applied Optoelectronics’ record quarter — what to watch next week
Applied Optoelectronics, Inc. surged 56.9% Friday, finishing at $84.23 after snapping back from Thursday’s 7.9% decline. The fiber-optics company drew traders back in with fresh results and guidance, sparking volume to jump: over 24.6 million shares traded, more than quadruple the prior session.
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