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

Yes, as of August 2026, Applied Optoelectronics, Inc. stock (AAOI) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Applied Optoelectronics, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 98.86%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Applied Optoelectronics, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Applied Optoelectronics, Inc. AAOI reviewed for Shariah compliance?

Tabadulat reviews Applied Optoelectronics, Inc. AAOI for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Applied Optoelectronics, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Applied Optoelectronics, Inc. stock (AAOI) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Applied Optoelectronics, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Applied Optoelectronics, Inc. stock (AAOI) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Applied Optoelectronics, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Applied Optoelectronics, Inc. stock (AAOI) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Applied Optoelectronics, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Applied Optoelectronics, Inc. AAOI stock?

As of August 2026, the dividend purification factor for Applied Optoelectronics, Inc. (AAOI) is 98.86%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Applied Optoelectronics, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Applied Optoelectronics, Inc. stock (AAOI) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Applied Optoelectronics, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Applied Optoelectronics, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

AAOI

About

Applied Optoelectronics, Inc.

AAOI

Applied Optoelectronics, Inc. is a leading manufacturer and developer of advanced fiber-optic networking products. The company specializes in the design and production of optical transceivers, lasers, and modulators, which are critical components enabling high-speed data transmission across telecommunications and data center networks. Applied Optoelectronics, Inc. serves major sectors such as telecommunications, broadband internet, and cloud computing, supplying infrastructure that supports rapidly expanding global demand for bandwidth and connectivity. Its technology plays a significant role in upgrading network architectures, including the implementation of next-generation 5G wireless networks and high-capacity data centers. Through continuous innovation in optical communication hardware, Applied Optoelectronics, Inc. helps drive the evolution of scalable, high-performance digital infrastructure in both enterprise and service provider environments, making it a key supplier in the information and communications technology marketplace.

Sector:

Technology

Industry:

Communication Equipment

Employees:

3309

Website:

https://www.ao-inc.com

AAOI

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Applied Optoelectronics, Inc.

About

Applied Optoelectronics, Inc.

AAOI

Frequently asked questions

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

How often is Applied Optoelectronics, Inc. AAOI reviewed for Shariah compliance?

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Non Permissible Income criteria?

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Interest Bearing Investments criteria?

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Applied Optoelectronics, Inc. AAOI stock?

Does Applied Optoelectronics, Inc. AAOI pass the AAOIFI Preference Share screen?

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