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Investing.com - Chinese optical module makers control roughly two-thirds of global transceiver supply, and no Western alternative can absorb that volume within the next one to two years, Counterpoint Research warned — a finding that casts doubt on whether a proposed U.S. import ban can be executed without damaging the AI infrastructure buildout it is meant to protect.
(Bloomberg) -- A potential ban on the import of Chinese optical transceiver modules into the US would inflict collateral damage on US hyperscalers, exacerbating a supply bottleneck that no American firm can ease, research firm Counterpoint warned on Wednesday.Most Read from BloombergTrump Says Iran Talks Going Well as Hopes Rise for Hormuz DealTaco Bell Met With Michigan on Parasite Weeks Before RecallBeer Dynasty Families Sell €731 Million Stake in AB InBevChina’s AI Blitz Creates ‘Death Zone’
Reports indicate the U.S. is considering new restrictions on certain data center components supplied to China. The potential rules focus on technology exports that involve high performance computing and advanced data infrastructure. Shares of Coherent (NYSE:COHR) and several optical and semiconductor peers have reacted to the reports as investors assess possible demand risks. Coherent sits at the crossroads of optics and semiconductors, with products that are used in data communications,...
Lumentum, Coherent Leads Networking Stocks Rally as Trump Considers Chinese Hardware Ban
Applied Optoelectronics heads into Q2 earnings with AI-driven 800G demand and CATV growth, but valuation and production constraints loom.
Corning just handed investors one of the steepest single-stock declines in its peer group, yet at least one major Wall Street bank is responding by raising its price target to levels that would shock most bears right now.
The tech stock rally continued, extending yesterday's gains, but today's rise looks a little different. The tech-heavy Nasdaq Composite was up 1.1%. The tech sector led the S&P 500, up 3.1%. Unlike yesterday, it wasn't the Magnificent Seven stocks doing the heavy lifting.
A reported U.S. ban on Chinese data center optical hardware sent a handful of domestic suppliers rocketing higher, but the proposal is still a draft and could be softened or dropped entirely before the year-end enforcement target.
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
Zhongji Innolight holds 27% of the global data center transceiver market
U.S. optical component stocks surged following a Reuters report that the Trump administration is drafting a ban on U.S. imports of new Chinese data center hardware. Applied Optoelectronics jumped 16%, Coherent gained 13%, Lumentum rose 11%, and Corning climbed 8%. According to four sources familiar with the matter, the Federal Communications Commission (FCC) is preparing restrictions against new Chinese optical transceivers—the critical hardware that routes data over fiber-optic cables inside AI
According to a Reuters report, the move could benefit Coherent and Lumentum by shifting demand toward U.S.-made optical transceivers.
Stock futures were rising on Tuesday, putting the on the brink of a record high as tech extended its recent rebound. Palantir was the S&P 500’s best performer ahead of the opening bell, surging 16% after the data analytics software developer reported strong second-quarter earnings. CEO Alex Karp described the quarter as “otherworldly,” as U.S. commercial revenue rose 149% from a year ago.
As AI data centers push the limits of traditional networking, photonics is emerging as a key technology.
Coherent stock has delivered a very large 424.1% return over the past three years, yet the valuation signals are split, with an intrinsic value estimate based on a Discounted Cash Flow (DCF) model pointing to upside while earnings based multiples suggest the shares screen as expensive. Over the past three years Coherent has returned 424.1%, which puts extra focus on whether the current price still leaves a margin of safety. Expectations for future cash flow growth can support the DCF based...
While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth. A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.
Chip stocks were a mixed bag on Monday as the Philadelphia semiconductor index, known as SOX, struggled to hold gains. However, Nvidia stock retook a key support level. In afternoon trades on the stock market today, the SOX rose a fraction.
Coherent has surged on AI data center momentum and a blockbuster NVIDIA partnership, but a 28% single-month drop reveals just how violently this high-beta stock can swing. Here is what three distinct scenarios say about where a $1,000 stake could land by 2027.
Shares of Corning had a tough July but a Truist analyst team believes the stock now has a “more reasonable entry point.” Shares of the optical networking company declined 0.5% to $137.52 in premarket trading on Monday after ending Friday up 2.2%. Corning and other optical networking names have become a major part of the artificial-intelligence trade.
Optics stocks are surging well past the broader semiconductor rally as AI data center demand sends valuations into triple-digit territory, but the gap between growth excitement and financial reality may be wider than investors realize.
AXT (NASDAQ:AXTI) reported record second-quarter revenue and a return to profitability, driven by strong demand for indium phosphide substrates used in optical connectivity for AI data centers. Management said it is accelerating capacity expansion as customer demand continues to exceed supply. Seco
DUOL, DAVE, TRI and COHR are set to stand out this earnings season, each displaying solid growth estimates and robust momentum across the business services sector.
SYM heads into fiscal Q3 with 20.7% revenue growth expected, a $22.7 B backlog and margin pressure from elevated costs.
Corning Incorporated (NYSE:GLW) delivered rapid optical growth on July 28, then suffered a share-price decline of more than 20% after its guidance fell short of elevated expectations. Coherent Corp. (NYSE:COHR) also traded sharply lower. Coherent belongs in this story for a specific reason: the two companies monetize different components of the same AI data-center links. […]
COHR is benefiting from the AI infrastructure boom as rising demand for optical networking strengthens its growth outlook despite valuation concerns.
Optics stocks that soared triple digits this year are getting hammered Tuesday, and the reason traces back to a single line in Alphabet's latest earnings report that traders cannot stop talking about.
Chip stocks came under pressure on a recent down session for the S&P 500, and Coherent (COHR) was among the index’s weakest performers as the benchmark slipped roughly 0.3% intraday. See our latest analysis for Coherent. Beyond the latest drop, Coherent’s share price has pulled back 28.71% over the past month and 10.74% over the past quarter. However, the year-to-date share price return is 39.61% and the 1-year total shareholder return is 160.12%, which indicates that longer-term momentum has...
Lumentum's CEO just named the obscure semiconductor material he believes will strangle AI infrastructure growth, and the supply gap is already wider than most investors realize.
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