Applied Optoelectronics Inc

AAOI remains in Stage 4 – Decline with a confirmed bearish medium-term bias under a long-term uptrend. Price is trading below declining short-term EMAs and the 50DMA after failing at resistance, and extreme oversold conditions caution against immediate selling. The momentum + EPS strategy favors deferred trimming into any relief rallies toward the falling 9EMA/21EMA and 50DMA zone rather than chasing further weakness.

• ↑Q1 2026 revenue reached $151.1M (+51% YoY), fourth record quarter.
• ↑Allocated $68.7M capex for 400G/800G capacity; ramping by mid-2027.
• ↓Top 10 customers represent 96% of revenue, elevating concentration risk.