Chinese Optical-Module Stocks Rebound as Analysts Downplay US AI Curbs

On Wednesday, shares of top optical-module manufacturers in China rebounded from earlier declines as analysts minimized the potential effects of suggested US restrictions that might prevent these companies from accessing future American AI data centers. This market shift followed a Tuesday report by Reuters indicating that the Trump administration is preparing a Federal Communications Commission (FCC) measure to prohibit new Chinese optical transceiver models from entering the US market, with plans to enact the rule this year. Analysts suggested that the regulations would likely maintain current supply chains and encounter significant challenges due to America's dependence on Chinese production. Zhongji Innolight fell 7.3 per cent in Shenzhen and 6.7 per cent in Hong Kong, while Eoptolink Technology decreased by 5.3 per cent, and Suzhou TFC Optical Communication rose by 2.3 per cent in Shenzhen. Meanwhile, US competitors like Coherent and Lumentum saw gains of 12.4 per cent and 8.9 per cent, respectively. Zhongji Innolight, Eoptolink, and Suzhou TFC did not provide immediate comments on Wednesday. The proposed FCC initiative aims to protect existing supplies while focusing on next-generation products, compelling Washington to weigh security issues against the expenses of replacing Chinese capabilities.