Applied Optoelectronics Signs 15-Year Lease in Taiwan

Applied Optoelectronics ( (AAOI) ) has shared an update.

On June 7, 2025, Prime World International Holdings Ltd., a subsidiary of Applied Optoelectronics, Inc., signed a 15-year lease agreement with San Ho Electric Machinery Industry Co., Ltd. for a property in Taoyuan City, Taiwan. This strategic move allows Prime World to modify the building to meet production needs and includes rights such as first refusal to purchase or renew the lease, potentially enhancing the company’s operational capabilities and market positioning.

The most recent analyst rating on (AAOI) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Applied Optoelectronics stock, see the AAOI Stock Forecast page.

Spark’s Take on AAOI Stock

According to Spark, TipRanks’ AI Analyst, AAOI is a Neutral.

The overall stock score reflects significant financial challenges, including losses and cash flow constraints, weighing heavily on the score. Technical analysis and valuation factors also present concerns, though recent earnings call highlights and a strategic equity distribution agreement offer some positive aspects. The company’s ability to address these financial and operational challenges will be crucial for future performance.

To see Spark’s full report on AAOI stock, click here.

More about Applied Optoelectronics

Applied Optoelectronics, Inc. operates in the optoelectronics industry, focusing on the development and manufacturing of advanced optical components and products. The company primarily serves the telecommunications, data center, and cable television markets.

Average Trading Volume: 3,944,671

Technical Sentiment Signal: Sell

Current Market Cap: $922.9M

For detailed information about AAOI stock, go to TipRanks’ Stock Analysis page.