5 Best Performing Growth Stocks So Far in 2026

2. Applied Optoelectronics, Inc. (NASDAQ:AAOI)

Year-Over-Year Revenue Growth: 64.32%

Year-to-Date Performance: 346.97%

Number of Hedge Fund Holders: 55

Applied Optoelectronics, Inc. (NASDAQ:AAOI) ranks among the best-performing growth stocks so far in 2026. On May 8, Wolfe Research analyst George Notter reaffirmed its Peerperform rating on Applied Optoelectronics, Inc. (NASDAQ:AAOI).

The research firm pointed to concerns about the company’s ability to keep up with strong demand from cloud providers. Applied Optoelectronics, Inc. (NASDAQ:AAOI) reported Q1 sales of $151.1 million and a loss of $0.07 per share, falling short of market expectations of $157 million in revenue and a loss of $0.05 per share. This weaker performance was mainly due to lower-than-expected data center sales.

For Q2, Applied Optoelectronics, Inc. (NASDAQ:AAOI) expects revenue between $180 million and $198 million and earnings of $0.00 per share at the midpoint of its guidance. This compares to market estimates of $197 million in revenue and earnings of $0.07 per share.

The company lifted its 2026 outlook to $1.1 billion in sales and $140 million in operating profit, up from the previous guidance of $1 billion in sales and over $100 million in operating profit. Applied Optoelectronics, Inc. (NASDAQ:AAOI) also increased its forecast for monthly transceiver sales by mid-2027 to $471 million from its previous estimate of $378 million, supported by stronger revenue from 1.6T products.

Wolfe Research also introduced its 2028 forecast of $2.837 billion in sales and $5.00 in earnings per share for the company.

Applied Optoelectronics, Inc. (NASDAQ:AAOI) is a leading developer and manufacturer of advanced optical and Hybrid Fiber-Coax (HFC) networking products for AI datacenters, CATV and broadband fiber access networks. It serves customers across cloud computing, CATV broadband, telecommunications, and fiber-to-the-home (FTTH) markets.