Coherent Stock Surges Over 12% Intraday as U.S. Proposes Ban on Chinese AI Chip Imports

According to reports first disclosed by Reuters, the U.S. Federal Communications Commission proposed banning American data centers from importing Chinese artificial intelligence optical components on August 4, causing Coherent stock to surge 12% intraday. Lumentum rose over 5%, while Amazon stock fell more than 1.7%.

Optical transceivers are critical components used for high-speed data transmission within AI data center fiber optic cables. The proposed ban aims to protect U.S. AI infrastructure from potential cybersecurity risks such as data theft and malware injection. The proposal targets Chinese manufacturer Zhongji Innolight, which controls approximately 27% of the global data center transceiver market.