Applied Optoelectronics Stock vs Competition: Who Wins?
Applied Optoelectronics (AAOI) stock soared 70% over the past year. But how does this small-cap optical player truly measure up against peers scaling in the booming AI and data-center market as of January 28, 2026? A deeper look reveals strong LTM revenue growth over 100%, yet concerning unprofitability and negative free cash flow, suggesting a challenging path to sustained performance against larger, more established competitors.
- AAOI’s -10.6% operating margin, lowest (AVGO 40.8%), reflects heavy 800G AI datacenter investments, contrasting peer profitability.
- AAOI’s 101.2% revenue growth, outpacing peers, is fueled by CATV and emerging high-speed AI optical transceivers demand.
- AAOI’s 69.6% stock gain, despite -18.4 PE, shows speculative AI datacenter growth interest, vs. peers’ stronger, profitable returns.
Here’s how Applied Optoelectronics stacks up across size, valuation, and profitability versus key peers.
| AAOI | LITE | COHR | CIEN | AVGO | MRVL | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 2.9 | 27.1 | 34.5 | 36.4 | 1,577.2 | 71.6 |
| Revenue ($ Bil) | 0.4 | 1.8 | 6.0 | 4.8 | 63.9 | 7.8 |
| PE Ratio | -18.4 | 240.6 | 138.2 | 295.3 | 68.2 | 28.9 |
| LTM Revenue Growth | 101.2% | 33.6% | 20.8% | 18.8% | 23.9% | 45.0% |
| LTM Operating Margin | -10.6% | -5.7% | 10.1% | 6.5% | 40.8% | 14.7% |
| LTM FCF Margin | -71.7% | -4.8% | 1.2% | 13.9% | 42.1% | 20.2% |
| 12M Market Return | 69.6% | 394.9% | 168.1% | 221.4% | 62.2% | -19.2% |
For more details on Applied Optoelectronics, read Buy or Sell AAOI Stock. Below we compare AAOI’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AAOI | 101.2% | – | 14.6% | -2.3% | 5.3% |
| LITE | 33.6% | 21.0% | -23.1% | 3.2% | |
| COHR | 20.8% | 23.4% | -8.8% | 55.6% | |
| CIEN | 18.8% | 18.8% | -8.5% | 20.8% | |
| AVGO | 23.9% | 23.9% | 44.0% | 7.9% | |
| MRVL | 45.0% | 4.7% | -7.0% | 32.7% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AAOI | -10.6% | – | -28.3% | -18.6% | -26.4% |
| LITE | -5.7% | -11.7% | -26.6% | -5.0% | |
| COHR | 10.1% | 9.2% | 2.6% | 1.6% | |
| CIEN | 6.5% | 6.5% | 4.8% | 8.8% | |
| AVGO | 40.8% | 40.8% | 29.1% | 45.9% | |
| MRVL | 14.7% | -6.4% | -7.9% | 6.1% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AAOI | -18.4 | – | -7.8 | -21.0 | -8.1 |
| LITE | 240.6 | 982.0 | -10.3 | -27.2 | |
| COHR | 138.2 | 578.6 | -92.0 | -23.1 | |
| CIEN | 295.3 | 269.7 | 146.2 | 26.3 | |
| AVGO | 68.2 | 70.5 | 181.9 | 32.9 | |
| MRVL | 28.9 | -83.1 | -101.9 | -314.1 |
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