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

Applied Optoelectronics, Inc. (AAOI) has a Shariah compliance score of 97/100 (Grade: A+, Excellent) 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: 0.3%), (3) interest-bearing deposits below 30% (AAOI: 2.1%), and (4) prohibited income below 5% (AAOI: 0.2%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

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

Applied Optoelectronics, Inc. (AAOI) has a non-permissible income ratio of 0.22%. Muslim investors should purify this percentage of any dividends received and capital gains realized from AAOI shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation 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 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. 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?

Halal

Applied Optoelectronics, Inc.

NASDAQTechnologyUS

$120.95

-12.99%

Compliance Status

Halal

Screened on Jul 10, 2026 · AAOIFI Standard 21

A+

Excellent

97Score

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 97/100 (Grade: A+).

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%.

0.3% 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.

Purify 0.2% of your income from AAOI

That is about $0.20 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

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 Jul 10, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Company debtWell clear of the limit0.3% / 30.0%

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

Compliance History

Halalnow
since Jun 2026
Not Halal
until the change above

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

Screened: Jul 10, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your AAOI Dividends

0.2% non-compliant income

AAOI has 0.2% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

9.7B

Price

$120.95

Sector

Technology

Industry

Semiconductors

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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+ (Excellent). 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+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.3% (limit 30%); interest-bearing deposits of 2.1% (limit 30%); prohibited income of 0.22% (limit 5%). 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: Jul 10, 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.