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AAOI vs MPWR
Which Stock Would AI Choose? Applied Optoelectronics, Inc. (AAOI) vs. Monolithic Power Systems, Inc. (MPWR) Stock Comparison
Key Takeaways
- AAOI has delivered explosive year-to-date (YTD) gains exceeding 400%, fueled by AI-driven demand for optical components, contrasting MPWR's steadier 74% YTD rise.
- MPWR boasts a larger market capitalization of $77 billion and profitability with positive earnings per share (EPS), while AAOI remains unprofitable despite revenue growth.
- Recent catalysts include a $20.9 million Texas grant for AAOI manufacturing expansion and MPWR's Q1 2026 earnings beat with 26% revenue growth.
- Both stocks benefit from AI data center trends, but AAOI exhibits higher volatility tied to optics demand, versus MPWR's diversified power management exposure.
- MPWR features in Tickeron's trending AI bots, signaling algorithmic preference amid semiconductor momentum.
Introduction
Applied Optoelectronics, Inc. (AAOI) and Monolithic Power Systems, Inc. (MPWR) operate in the semiconductor sector, capitalizing on surging demand for AI infrastructure and data centers. This stock comparison analyzes their business models, recent market performance, and relative positioning, aiding traders seeking high-growth opportunities and investors prioritizing stability. With both benefiting from the AI boom—AAOI through fiber-optic transceivers and MPWR via power management solutions—this analysis highlights key contrasts in momentum, risk, and fundamentals for informed decision-making in today's volatile market.
AAOI Overview and Recent Performance
Applied Optoelectronics, Inc. (AAOI) designs and manufactures fiber-optic networking products, including optical modules, lasers, and transceivers primarily for internet data centers, cable TV, and telecom providers. In recent market activity, AAOI stock has surged to all-time highs, posting YTD returns over 400% and one-year gains exceeding 1,000%. This momentum stems from AI optimism, large transceiver orders, and a $20.9 million Texas Semiconductor Innovation Fund grant to expand manufacturing in Sugar Land. Sentiment has shifted positively on hyperscale data center demand, though volatility persists due to the company's negative EPS (-$0.64) and $455 million trailing twelve months (TTM) revenue amid ongoing investments.
MPWR Overview and Recent Performance
Monolithic Power Systems, Inc. (MPWR) develops semiconductor-based power electronics, such as DC-to-DC converters and power management integrated circuits (ICs), serving computing, automotive, enterprise data, and industrial markets. Recent weeks have seen MPWR advance with YTD gains of 74% and one-year returns near 150%, bolstered by Q1 2026 results showing $804 million revenue—up 26% year-over-year—and adjusted EPS of $5.10, beating estimates. Analyst upgrades reflect robust AI and data center demand, with market cap at $77 billion, PE ratio (price-to-earnings) of 113, and positive EPS ($13.93) on $2.96 billion TTM revenue. Performance remains consistent despite sector rotations.
Trending AI Robots
Tickeron’s Trending AI Robots page curates 25 top-performing bots from over 350 AI trading agents that scan thousands of tickers across stocks, ETFs, and crypto. These bots employ diverse strategies like trend following, corridor take-profit/stop-loss (TP/SL) exits (e.g., 3% TP/2% SL), and multi-agent systems, with timeframes from 1 day to 60 minutes. Standout stats include annualized returns up to 162%, win rates of 51-88%, profit factors to 11.7, and profit-to-drawdown ratios exceeding 17. Semiconductor-focused bots, including one featuring MPWR with 83% returns and 68% win rate, highlight AI infrastructure plays. Traders can explore virtual or brokerage-linked agents tailored to current conditions—visit Trending AI Robots for real-time signals and performance details.
Head-to-Head Comparison
AAOI focuses on optical transceivers for data center interconnects, exposing it to concentrated hyperscaler demand but higher cyclical risk, while MPWR offers diversified power solutions across automotive and enterprise, enhancing stability. Growth drivers differ: AAOI rides AI optics supercycle with grants aiding capacity, versus MPWR's earnings momentum from broad semi recovery. Recent momentum favors AAOI's volatility (52-week range $13-$192), but MPWR ($613-$1,662) shows superior profitability and scale. Risk factors include AAOI's losses amid capex, offset by MPWR's premium valuation. Market sentiment tilts toward MPWR for consistency in AI power needs.
Tickeron AI Verdict
Tickeron’s AI currently favors MPWR due to its trend consistency, profitability, recent earnings catalysts, and presence in high-performing trending bots. While AAOI offers superior short-term momentum from AI optics demand, MPWR's relative stability and diversified positioning suggest higher probability of sustained outperformance in evolving market conditions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AAOI is a Hold and MPWR is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AAOI’s FA Score shows that 2 FA rating(s) are green whileMPWR’s FA Score has 3 green FA rating(s).
- AAOI’s FA Score: 2 green, 3 red.
- MPWR’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AAOI’s TA Score shows that 3 TA indicator(s) are bullish while MPWR’s TA Score has 4 bullish TA indicator(s).
- AAOI’s TA Score: 3 bullish, 5 bearish.
- MPWR’s TA Score: 4 bullish, 5 bearish.
Price Growth
AAOI (@Telecommunications Equipment) experienced а +6.89% price change this week, while MPWR (@Semiconductors) price change was +5.58% for the same time period.
The average weekly price growth across all stocks in the @Telecommunications Equipment industry was -0.38%. For the same industry, the average monthly price growth was +14.35%, and the average quarterly price growth was +61.42%.
The average weekly price growth across all stocks in the @Semiconductors industry was +8.41%. For the same industry, the average monthly price growth was +47.14%, and the average quarterly price growth was +78.48%.
Reported Earning Dates
AAOI is expected to report earnings on Jul 30, 2026.
MPWR is expected to report earnings on Aug 03, 2026.
Industries' Descriptions
@Telecommunications Equipment (-0.38% weekly)The Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.
@Semiconductors (+8.41% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| AAOI | MPWR | AAOI / MPWR | |
| Capitalization | 12B | 81.6B | 15% |
| EBITDA | -16.14M | 857M | -2% |
| Gain YTD | 430.407 | 83.638 | 515% |
| P/E Ratio | N/A | 118.90 | - |
| Revenue | 507M | 2.96B | 17% |
| Total Cash | 440M | 1.37B | 32% |
| Total Debt | 280M | 20M | 1,400% |
AAOI | MPWR | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 71 | 83 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 66 Overvalued | 85 Overvalued | |
PROFIT vs RISK RATING 1..100 | 6 | 15 | |
SMR RATING 1..100 | 92 | 46 | |
PRICE GROWTH RATING 1..100 | 34 | 7 | |
P/E GROWTH RATING 1..100 | 6 | 2 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
AAOI's Valuation (66) in the Telecommunications Equipment industry is in the same range as MPWR (85) in the Semiconductors industry. This means that AAOI’s stock grew similarly to MPWR’s over the last 12 months.
AAOI's Profit vs Risk Rating (6) in the Telecommunications Equipment industry is in the same range as MPWR (15) in the Semiconductors industry. This means that AAOI’s stock grew similarly to MPWR’s over the last 12 months.
MPWR's SMR Rating (46) in the Semiconductors industry is somewhat better than the same rating for AAOI (92) in the Telecommunications Equipment industry. This means that MPWR’s stock grew somewhat faster than AAOI’s over the last 12 months.
MPWR's Price Growth Rating (7) in the Semiconductors industry is in the same range as AAOI (34) in the Telecommunications Equipment industry. This means that MPWR’s stock grew similarly to AAOI’s over the last 12 months.
MPWR's P/E Growth Rating (2) in the Semiconductors industry is in the same range as AAOI (6) in the Telecommunications Equipment industry. This means that MPWR’s stock grew similarly to AAOI’s over the last 12 months.
| AAOI | MPWR | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 86% | 2 days ago 71% |
| Stochastic ODDS (%) | 2 days ago 84% | 2 days ago 60% |
| Momentum ODDS (%) | 2 days ago 78% | 2 days ago 75% |
| MACD ODDS (%) | 2 days ago 85% | 2 days ago 62% |
| TrendWeek ODDS (%) | 2 days ago 84% | 2 days ago 80% |
| TrendMonth ODDS (%) | 2 days ago 88% | 2 days ago 81% |
| Advances ODDS (%) | 12 days ago 86% | 2 days ago 78% |
| Declines ODDS (%) | 5 days ago 86% | 9 days ago 65% |
| BollingerBands ODDS (%) | 2 days ago 81% | 7 days ago 69% |
| Aroon ODDS (%) | 2 days ago 89% | 2 days ago 77% |
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AAOI and
Correlation & Price change
A.I.dvisor indicates that over the last year, AAOI has been loosely correlated with LITE. These tickers have moved in lockstep 55% of the time. This A.I.-generated data suggests there is some statistical probability that if AAOI jumps, then LITE could also see price increases.
| Ticker / NAME | Correlation To AAOI | 1D Price Change % | ||
|---|---|---|---|---|
| AAOI | 100% | +24.14% | ||
| LITE - AAOI | 55% Loosely correlated | +16.52% | ||
| CIEN - AAOI | 54% Loosely correlated | +6.09% | ||
| LASR - AAOI | 47% Loosely correlated | +14.94% | ||
| NVDA - AAOI | 45% Loosely correlated | +1.97% | ||
| MPWR - AAOI | 44% Loosely correlated | +3.76% | ||
More | ||||
MPWR and
Correlation & Price change
A.I.dvisor indicates that over the last year, MPWR has been closely correlated with KLAC. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if MPWR jumps, then KLAC could also see price increases.
| Ticker / NAME | Correlation To MPWR | 1D Price Change % | ||
|---|---|---|---|---|
| MPWR | 100% | +3.76% | ||
| KLAC - MPWR | 74% Closely correlated | -1.28% | ||
| LRCX - MPWR | 73% Closely correlated | +0.68% | ||
| NXPI - MPWR | 73% Closely correlated | +3.81% | ||
| AMAT - MPWR | 70% Closely correlated | +1.88% | ||
| KLIC - MPWR | 70% Closely correlated | +1.59% | ||
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