Optical Communications Stocks Surge Against Fed Rate Hike as Capital Pivots to Tangible AI Orders
· Source: finance.biggo.com
In short
The U.S. Federal Reserve raised interest rates by a quarter point on the 16th, yet optical communications stocks rallied sharply against the broader market decline, with Lumentum gaining 9.59% and Coherent 6.92% as the top two S&P 500 performers. Analysts say investors are rotating capital away from speculative AI concept stocks toward AI hardware supply chain suppliers with high demand visibility and confirmed orders, particularly makers of 800G and 1.6T optical components for data centers. Attention now shifts to Micron Technology's earnings at the end of the month, where backlog levels will serve as a key barometer for validating AI infrastructure demand.
Read Original Article — Read the full article on the publisher’s site.
In the issue of week 38, 2026: AI Moves Closer to Supply Chain Decisions, but Data and Returns Still Lag
Tags: data centers, optical networks, semiconductors, supply chain, capex, AI hardware