Jim Cramer on Applied Optoelectronics: “I Don’t Recommend Buying These Stocks Up Here”

Applied Optoelectronics, Inc. (NASDAQ:AAOI) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. Answering a caller’s query about the stock during the lightning round, Cramer said:

Look, we’re in fiber optics La La Land, and I know my Charitable Trust has got it, too. I don’t recommend buying these stocks up here. They’re all parabolic, and that’s going to be not good for the market.

Photo by Artem Podrez on Pexels

Applied Optoelectronics, Inc. (NASDAQ:AAOI) designs and sells fiber-optic networking equipment, including lasers, modules, and transmitters. The company provides its products to internet data centers, cable television providers, and telecommunications manufacturers.

On May 7, it reported its Q1 2026 results. The company posted a non-GAAP EPS of -$0.07, missing the estimates by $0.02. Applied Optoelectronics, Inc.’s (NASDAQ:AAOI) revenue of $151.1 million was up 51.3% year-over-year, but was $3.71 million below estimates. For Q2, the company expects revenue in the range of $180 million to $198 million, non-GAAP gross margin in the range of 29% to 30%, and non-GAAP net loss of $2.5 million to income of $2.8 million.

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