Applied Optoelectronics Inc (NASDAQ:AAOI) shares are dipping on Friday despite Rosenblatt’s boosted price target. Here’s what you need to know.

Applied Optoelectronics stock is trading near recent highs. What’s the outlook for AAOI shares?

Rosenblatt analyst Mike Genovese reiterated his Buy rating and lifted his target to $220 from $140, implying meaningful upside from current levels. His call suggests the firm views the company's upbeat second‑quarter outlook and long‑term position in AI‑driven optical networking as more important than the first-quarter shortfall.

Even so, the first‑quarter results were soft. The company missed expectations on both the top and bottom line. Revenue came in at $151.1 million, about 2.6% below estimates, while non‑GAAP EPS loss of 7 cents missed by roughly 17%.

Q2 Guidance Lands Mixed, Not A Beat

The company's second‑quarter outlook didn't provide the lift bulls were hoping for. Applied Optoelectronics guided for adjusted EPS between a loss of 3 cents and a gain of 3 cents, below the 7 cents analysts were expecting. Revenue guidance of $180 million to $198 million ...