Applied Optoelectronics (AAOI) is a small-cap stock with high upside potential in fiber-optic networking.

From Yahoo Finance.: 2025-04-06 16:28:00

Applied Optoelectronics, Inc. (AAOI) is a small-cap stock with a 133% upside potential and a market capitalization of $823.092 million. The company specializes in fiber-optic networking products and recently secured a deal with Amazon. AAOI’s Q4 2024 earnings showed promise, with revenue growth attributed to its 400G products and CATV segment.

Small-cap stocks, with market capitalizations between $300 million and $2 billion, have historically outperformed large-cap stocks. Analysts value small-cap stocks for their growth potential, volatility, and niche market presence. Studies show that small-caps have higher average returns and behave differently in portfolios, making them attractive options for investment.

Applied Optoelectronics, Inc. (AAOI) ranks 4th on the list of small-cap stocks with huge upside potential. The company’s expansion plans, strong demand for its products in cloud computing and data centers, and one-year price target of $38.20 indicate a positive outlook. AAOI’s presence in the AI sector also adds to its appeal for investors seeking high returns.



Read more at Yahoo Finance.: Is Applied Optoelectronics (AAOI) A Small Cap Stock with Huge Upside Potential?