What is Applied Optoelectronics, Inc.'s Shariah compliance score?

Applied Optoelectronics, Inc. (AAOI) has a Shariah compliance score of 86/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Applied Optoelectronics, Inc. pass AAOIFI screening?

Applied Optoelectronics, Inc. (AAOI) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (AAOI: 0.4%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

How much purification is needed for Applied Optoelectronics, Inc. stock?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the exact percentage and amount for Applied Optoelectronics, Inc. (AAOI) using the latest financial data.

Where can I screen Applied Optoelectronics, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Applied Optoelectronics, Inc. (AAOI) and 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about AAOI's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

AAOI: Is Applied Optoelectronics, Inc. Halal?

Applied Optoelectronics, Inc.

NASDAQTechnologyUS

$120.95

-12.99%

Market Cap: 9.7B

Compliance Status

Halal

Screened on Aug 31, 2026 · AAOIFI Standard 21

Very Good

86Score

Is Applied Optoelectronics, Inc. (AAOI) halal? Halal. Based on AAOIFI screening, Applied Optoelectronics, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 86/100 (Grade: A).

Quote this verdict

HalalScreener rates Applied Optoelectronics, Inc. (AAOI) Halal, 86/100, grade A under AAOIFI Standard 21, screened Aug 31, 2026. Source: https://halalscreener.app/en/stock/AAOI

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

0.4% of 30.0% limit

What this means for you

You can own AAOI

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened AAOI's prohibited income, but the exact share you would need to purify is part of Pro.

About Applied Optoelectronics, Inc.

Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions. Its extensive product catalog features optical modules, a range of laser components, subassemblies, transceivers, and complete turn-key systems. The company also supplies critical infrastructure hardware such as headend, node, and distribution equipment. AAOI caters to a varied clientele, including internet data center operators, manufacturers of cable television and telecommunications equipment, and internet service providers, utilizing both direct and partner-based sales channels. Founded in 1997, Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas.

Sector: Technology · Industry: Semiconductors

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 31, 2026

Compliance History

Halalnow
since Jun 2026
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

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Frequently Asked Questions

Is Applied Optoelectronics, Inc. (AAOI) halal to invest in?

Based on AAOIFI Standard 21 screening, Applied Optoelectronics, Inc. (AAOI) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Applied Optoelectronics, Inc. get a A compliance rating?

Applied Optoelectronics, Inc. (AAOI) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.4% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Applied Optoelectronics, Inc.'s Shariah verdict?

Applied Optoelectronics, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Applied Optoelectronics, Inc. re-screened for Shariah compliance?

Applied Optoelectronics, Inc. (AAOI) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 31, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.