Trump Drafts Ban on Chinese Optical Transceivers, Lifting COHR 13% and Hitting Amazon
Updated
Updated · TradingView · Aug 4
Trump Drafts Ban on Chinese Optical Transceivers, Lifting COHR 13% and Hitting Amazon
3 articles · Updated · TradingView · Aug 4
Summary
Coherent rose as much as 13%, Lumentum gained more than 10% and Amazon fell over 2% in premarket trading after Reuters reported a draft U.S. ban on imports of new Chinese optical transceivers for data centers.
The FCC is preparing the rule for release later this year to address cybersecurity risks in AI networking gear, including potential data theft, malware installation and service disruption, though the proposal could still be changed or shelved.
The restriction would likely raise AI infrastructure costs for hyperscalers and redirect demand toward U.S. suppliers such as Coherent and Lumentum, which Nvidia already backed in March with multi-year procurement deals and $2 billion investments in each.
Applied Optoelectronics jumped more than 16%, POET gained over 10% and Marvell added more than 8% as traders bet the measure could reshape the optical supply chain away from Chinese vendors.
Zhongji Innolight, one of the world's largest optical transceiver makers, is seen as a likely target after the Pentagon added it in June to its list of alleged Chinese military-backed companies.