Why These 15 Data Center Stocks Are Plunging In 2025

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2. Applied Optoelectronics Inc (NASDAQ:AAOI)

Number of Hedge Fund Holders In Q4 2024: 23

Applied Optoelectronics Inc (NASDAQ:AAOI) makes fiber-optic networking products that primarily serve internet data centers, cable TV broadband, telecom equipment manufacturers, and fiber-to-the-home markets.

The stock is down significantly so far in 2025 as Applied Optoelectronics reported a non-GAAP net loss of $0.02 per diluted share in Q4 2024, compared to a profit during the same period last year.

That said, revenue grew slightly to $100.27 million, and concerns over declining margins and profitability overshadowed the positive sales trend.

Moreover, B. Riley lowered its price target for AAOI from $14 to $13 and maintained a “sell” rating due to valuation concerns and operational risks.

The consensus price target of $25.8 implies 16.69% upside.

AAOI stock is down 40.02% year-to-date.

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