Optical Stocks Rally as AI Bottleneck Fears Mount

Lumentum (NASDAQ:LITE) shares rose 4% to $897 while Applied Optoelectronics and Corning gained 3%, though Coherent remained flat. Analysts cite pending U.S. rules expected in early 2027 that could ban Chinese suppliers from the next-gen market, which currently produce two-thirds of optical transceivers. Nvidia has invested $2 billion in Lumentum, whose stock is sold out until 2029.