Applied Opt (AAOI)vsNVIDIA Corporation (NVDA)
AAOI
Applied Opt
$105.36
+2.00%
TECHNOLOGY · Cap: $9.47B
NVDA
NVIDIA Corporation
$218.29
-0.03%
TECHNOLOGY · Cap: $5.27T
Smart Verdict
WallStSmart Research — data-driven comparison
NVIDIA Corporation generates 50736% more annual revenue ($302.97B vs $595.97M). NVDA leads profitability with a 63.7% profit margin vs -9.6%. NVDA appears more attractively valued with a PEG of 0.56. NVDA earns a higher WallStSmart Score of 80/100 (A-).
AAOI
Hold38
out of 100
Grade: F
NVDA
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AAOI.
Margin of Safety
-52.6%
Fair Value
$143.03
Current Price
$218.29
$75.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 86.4% year-over-year
Conservative balance sheet, low leverage
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 84 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 66.2%
Revenue surging 105.9% year-over-year
Earnings expanding 127.8% YoY
Areas to Watch
0.0% earnings growth
ROE of -3.4% — below average capital efficiency
Negative free cash flow — burning cash
Distress zone — elevated risk
Moderate valuation
Weak financial health signals
Trading at 23.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AAOI
The strongest argument for AAOI centers on Revenue Growth, Debt/Equity, PEG Ratio. Revenue growth of 86.4% demonstrates continued momentum. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : NVDA
The strongest argument for NVDA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 63.7% and operating margin at 66.2%. Revenue growth of 105.9% demonstrates continued momentum.
Bear Case : AAOI
The primary concerns for AAOI are EPS Growth, Return on Equity, Free Cash Flow.
Bear Case : NVDA
The primary concerns for NVDA are P/E Ratio, Piotroski F-Score, Price/Book.
Key Dynamics to Monitor
AAOI profiles as a hypergrowth stock while NVDA is a growth play — different risk/reward profiles.
AAOI carries more volatility with a beta of 3.78 — expect wider price swings.
NVDA is growing revenue faster at 105.9% — sustainability is the question.
NVDA generates stronger free cash flow (21.4B), providing more financial flexibility.
Bottom Line
NVDA scores higher overall (80/100 vs 38/100), backed by strong 63.7% margins and 105.9% revenue growth. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Applied Opt
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber optic networking products globally. The company is headquartered in Sugar Land, Texas.
NVIDIA Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
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