Raymond James analyst Simon Leopold notes that investor worry over competition has dogged Applied Optoelectronics' stock, but he believes threats are "exaggerated" and that market growth will support multiple winners. The competitive landscape has not changed dramatically, he adds. While Leopold acknowledges that he believes Chinese supplier Innolight presents the greatest competitive threat and has taken share, he believes it has inherent disadvantages versus Applied Optoelectronics. The analyst reiterates a Strong Buy on the shares. In late morning trading, shares of Applied Optoelectronics have gained about 10% to $39.27.