Huge news that the Trump administration is looking to ban Chinese transceiver imports.
This intensifies the shortage economics currently seen at $COHR, $LITE and $AAOI.
Which would mean ASP and margin inflections given that the West can't replace Innolight's volume near-term.
I don't know *if* this Chinese ban actually passes — it will materially weaken the U.S. DC buildout if so.
Also, we're seeing a pretty clear pattern now:
- Chinese drones banned in December.
- Chinese routers (TP-Link) banned in March.
- Chinese power inverters banned last week.
So the FCC is working through the entire Chinese import manifest one by one lol.