This work presents a numerical model to analyze intensity modulation and carrier dynamics in InGaAs laser diodes, which are crucial for high-speed optical communication and photonics. Using MATLAB simulations, we evaluate optical gain, threshold current, and frequency response via delay differential equations (DDEs) and Fast Fourier Transform (FFT). The results highlight key factors that affect laser efficiency, including carrier injection, recombination mechanisms, and quantum well structures. Future research will focus on reducing non-radiative losses, optimizing carrier transport using strain-compensated quantum wells, and improving thermal management. The analysis of laser diode frequency response relies on the Fast Fourier Transform (FFT) combined with Hamming window functions, which measure modulation capabilities and bandwidth speed. The findings indicate that the optical gain of laser diodes, along with threshold current and high-frequency operation, relies on carrier injection, quantum well structure, and recombination mechanisms. It utilizes carrier lifetime measurement, relaxation oscillation, and modulation response analysis to determine which operational variables affect the diode’s performance. This approach will help minimize non-radiative recombination losses while enhancing carrier transport by utilizing strain-compensated quantum wells and developing more effective thermal management systems, thereby advancing the performance of laser diodes.