Applied Optoelectronics (AAOI) Soars 12.5% on Buy Reco

We recently published 10 Small Stocks with Mighty Gains. Applied Optoelectronics, Inc. (NASDAQ:AAOI) is one of the top-performing stocks on Wednesday.

Applied Optoelectronics rallied for a fourth straight day on Wednesday, adding 12.49 percent to finish at $25.57 apiece as investors took heart from an investment firm’s reaffirmed “buy” recommendation for its stock.

In a market note, Needham & Company maintained its rating and $38 price target for Applied Optoelectronics, Inc. (NASDAQ:AAOI), marking a 48.6 percent upside potential from its latest closing price.

In other news, the company said that its chief finance and strategy officer, Stefan Murry, would present in a fireside chat at the Raymond James 2025 TMT & Consumer Conference on December 9, 2025.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) is engaged in developing and manufacturing advanced optical and HFC networking products for AI datacenters, CATV, and broadband fiber access networks.

In the third quarter of the year, the company widened its net loss by 1.1 percent to $17.9 million from $17.7 million in the same period last year.

Total revenues, on the other hand, surged by 82 percent to $118.63 million from $65.15 million year-on-year, with the bulk coming from revenues from data centers, at $43.9 million, or 7.3 percent higher than the $40.9 million in the same quarter last year.

For the fourth quarter, Applied Optoelectronics, Inc. (NASDAQ:AAOI) targets revenues between $125 million and $140 million, and net loss between $2.8 million and $9 million.

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Disclosure: None. This article is originally published at Insider Monkey.