Applied Optoelectronics (AAOI)
Entry: Unlock
Price target: 38.00-40.00
Second PT: Unlock
Applied Optoelectronics (AAOI) is making a name for itself in one of today’s hottest sectors, optical communications technology. The company designs and manufactures products that help systems communicate faster and more efficiently, which is essential for modern data centers.
Its biggest vote of confidence came from Microsoft, which signed a deal with AAOI to develop advanced lasers for its data centers. This partnership has put AAOI in the spotlight as demand for larger and more powerful data centers continues to grow, driven largely by the rise of generative AI. As AI adoption accelerates, data centers need faster and more complex networking infrastructure. AAOI stands out with its ability to produce high-performance fiber-optic components, especially its 400G and 800G products. This focus on next-gen tech has already led to strong revenue growth, and the company expects that momentum to continue.
AAOI’s stock has nearly doubled since their last earnings report, which showed revenue growth of 145% to $100 million for Q1. Projections for this year’s revenue are around $474 million, which would mark nearly 100% growth from 2024. 2026 is also expected to be a big year, with revenue forecasts reflecting about $736 million. With the company’s next earnings report coming up in early August, investors may ramp up their position in anticipation of those earnings, and if AAOI reinforces the same outlook, it has a shot of seeing its 52 week highs again.
Please note that AAOI is still a fairly low revenue company so it is not yet safe to call it a “buy and forget” type name. Generally speaking, demand for semiconductors and their suppliers comes in cycles, and right now the rising waive is lifting all ships. This won’t always be the case, so investors must monitor earnings closely to take necessary action on the stock. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Century Aluminum Company (CENX)
Entry: Unlock
Price target: 23.50-24.50
Second PT: Unlock
Tariff threats are affecting each sector of the market in different ways, and even companies within the same sector are reacting differently, depending on where they manufacture and source their materials. One of the most significant targets in the trade war has been aluminum, with recent tariffs on imports reaching as high as 50%.
This puts pressure on companies like Alcoa ($AA), which relies heavily on imported materials and will face rising costs as a result. In contrast, Century Aluminum operates facilities in the U.S. and Greenland, giving it a competitive edge. As tariffs drive aluminum prices higher, Century stands to benefit, turning the added cost others pay into increased profit. Century has already seen a rise in revenue as prices for aluminum surged in the past twelve months, but their bottomline has remained stagnant. Current projections are in their favor as local aluminum companies become more prominent, which will make the stock more attractive.
Moreover, Century announced recently that the company plans to build the United States’ first new aluminum smelter in over 45 years, exactly aligning with the current administration’s push to build in the U.S. for the U.S. “Upon completion, the smelter would double the size of the current U.S. primary aluminum industry.” (Century Aluminum Website). The Department of Energy selected Century’s project to receive significant support, which should proper the company forward. This landmark investment marks a significant boost to the U.S. primary aluminum industry, providing essential capital to reinforce domestic supply chains.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
AeroVironment (AVAV)
Entry: Unlock
Price target: 285.00-295.00
Second PT: Unlock
In a recent video from the Pentagon, Defense Secretary Pete Hegseth declared that the department is "unleashing American drone dominance." The video sparked a rally in drone stocks, leading names like AeroVironment, RedCat, Unusual Machines, and Kratos higher. Among those names, AeroVironment looks to be one that stands out. The company became a prominent defense contractor since the war in Ukraine, where drones are a key part of the defense that the U.S. is assisting with. And now with the U.S. doubling down on drones, it stands to benefit even more.
Looking at its financial performance, AeroVironment has more than doubled its revenue since 2020, rising from $395 million to finishing 2024 above $800 million. That number is expected to rapidly grow in the next four years, with estimates reaching more than $3 billion in 2028. While revenue has been impressive, the company has struggled to deliver consistent profits, but that’s also expected to ramp up in the coming years.
With policy turning in their favor and demand for their products on the rise, AeroVironment may be among the top names to watch in the robotics and drones space. Insiders of the company own 39% of its shares, reinforcing their own conviction in the stock and their future of the company.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck!