Applied Opt (AAOI)vsNVIDIA Corporation (NVDA)
AAOI
Applied Opt
$76.52
+17.76%
TECHNOLOGY · Cap: $8.22B
NVDA
NVIDIA Corporation
$190.01
-3.55%
TECHNOLOGY · Cap: $5.01T
Smart Verdict
WallStSmart Research — data-driven comparison
NVIDIA Corporation generates 49898% more annual revenue ($253.49B vs $507.00M). NVDA leads profitability with a 0.6% profit margin vs -8.6%. NVDA appears more attractively valued with a PEG of 0.58. 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
-65.1%
Fair Value
$119.30
Current Price
$190.01
$70.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 51.4% 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 82 in profit
Conservative balance sheet, low leverage
Generating 48.6B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
0.0% earnings growth
ROE of -3.9% — below average capital efficiency
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
0.9% revenue growth
2.1% earnings growth
0.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : AAOI
The strongest argument for AAOI centers on Revenue Growth, Debt/Equity, PEG Ratio. Revenue growth of 51.4% 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, Debt/Equity. PEG of 0.58 suggests the stock is reasonably priced for its growth.
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, Revenue Growth, EPS Growth. Thin 0.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
AAOI profiles as a hypergrowth stock while NVDA is a value play — different risk/reward profiles.
AAOI carries more volatility with a beta of 3.69 — expect wider price swings.
AAOI is growing revenue faster at 51.4% — sustainability is the question.
NVDA generates stronger free cash flow (48.6B), providing more financial flexibility.
Bottom Line
NVDA scores higher overall (80/100 vs 38/100). 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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