Applied Optoelectronics

Revenue visibility is low because sales are governed by short term purchase orders that can be rescheduled or canceled, and customer concentration is high. In 2025, two customers represented 81.9 percent of revenue, and AOI’s history shows sharp swings by generation as product cycles shift from 40G to 100G to 400G and 800G.

Although 2026 guidance signals strong growth potential tied to AI data centers, we treat it as inherently less predictable until diversified multi customer volume shipments are sustained.