U.S. Optical Telecom Stocks Surge on China Import Ban Plan; Applied Optoelectronics Up 72% in 4 Trading Days

AAOI-9.10%
LITE-9.87%
COHR-12.70%
According to Reuters, major U.S. optical telecom companies surged on August 4 as the Trump administration prepares to ban Chinese optical transceiver imports on security grounds. Lumentum Holdings closed up 8.92% to $849.47, extending a 4-trading-day rally to 41.02% gains. Coherent jumped 12.35%, with 4-day gains reaching 45.79%, while Applied Optoelectronics surged 19.44%, bringing 4-day gains to 72.02%. The Federal Communications Commission is drafting a rule to protect AI infrastructure by blocking new Chinese optical transceiver shipments, with potential implementation by year-end. If enacted, U.S. tech companies would be forced to source components from American competitors instead of Chinese suppliers.
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