Shares of AAOI, COHR, and LITE jump after reports of a draft U.S. ban on Chinese optical transceivers for data centers.
Shares of Applied Optoelectronics, Coherent, and Lumentum rallied sharply Tuesday following reports of a draft U.S. ban on Chinese optical transceivers for data centers. Applied Optoelectronics led gains, climbing 17% to $129.34, while Coherent and Lumentum rose 11% and 6%, respectively.
The move follows a Reuters report indicating the Trump administration and FCC are preparing restrictions on imports of Chinese data center hardware. Applied Optoelectronics has guided Q2 revenue to $198 million and targets over $1 billion in full-year 2026 sales. The NASDAQ 100 rose 1.66% amid broader market strength.
Optics stocks have outperformed broader semiconductor names, with the SOXX ETF gaining 5% but trailing pure-play optics firms. Applied Optoelectronics is up 216% year to date, reflecting strong demand for domestic alternatives.