Optical communications stocks continued their ascent in early trading on Thursday. Applied Optoelectronics (AAOI.US) climbed more than 7%, while Lumentum (LITE.US) advanced over 6% and Corning (GLW.US) rose nearly 4%, with all three stocks reaching new all-time highs.
The rally follows an announcement from the U.S. Federal Communications Commission (FCC) that it will relax power restrictions on satellite spectrum usage. A vote on the related rule amendments is scheduled for April 30, which is expected to increase broadband capacity by up to sevenfold.
Additionally, Taiwan Semiconductor Manufacturing Company stated at the Silicon Photonics Industry Alliance (SiPhIA) forum that its silicon photonics integration platform, COUPE, is set to enter mass production this year. This development marks a critical milestone in the adoption of co-packaged optics (CPO) and signifies that AI-driven optical communications are entering the final stages of industrialization.
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