Marvell Technology, Lumentum, and Corning shares rose on August 4. The Federal Communications Commission is reportedly drafting a ban on new Chinese-made optical transceivers. These components manage data transmission for AI and cloud data centers.
The proposed measure aims to mitigate cybersecurity risks such as data theft and malware. This policy would shift market demand away from major Chinese suppliers like Zhongji Innolight toward U.S.-based manufacturers.
Lumentum and Coherent shares recorded double-digit percentage gains following the report. While the move could increase costs for data center operators, investors favored the prospect of reduced competition for American technology firms.