US Photonics Stocks Surge 5% Amid Proposed Chinese Import Ban

AAOI and COHR lead US optoelectronics gains over 5% as FCC plans restrictions on Chinese transceivers, potentially shifting supply chains to domestic vendors.

Woofun AI data shows that the US photonics sector extended recent gains, with Applied Optoelectronics (AAOI) rising 5.1% and Coherent Corp (COHR) climbing 5.86%. Other movers included Lumentum Holdings (LITE) up 2.56%, Ciena Corporation (CIEN) up 2.49%, and the Pure Photonic ETF (FOTO) gaining 2.2%. Corning (GLW) and Marvell Technology (MRVL) saw minor increases of 0.52% and 0.5% respectively.

The rally follows reports that the Trump administration is drafting a ban on importing new Chinese data center components. The Federal Communications Commission plans to impose import restrictions on Chinese optical transceivers, aiming to announce effectiveness within this year. Such measures could increase costs for cloud providers like Amazon Web Services, potentially driving demand toward US-based suppliers such as Coherent and Lumentum.