Eddie Wong: The Puzzle Behind Diverging Share Prices of Chinese and US Optical Communications Firms

Eddie Wong points out that demand for high-speed interconnection from artificial intelligence infrastructure is driving the expansion of the optical communications industry, but while upstream US component and system suppliers have recently surged sharply, Chinese midstream and downstream module makers have fluctuated amid political noise and even seen significant pullbacks. He believes this does not reflect a fundamental divergence in fundamentals, but rather the result of geopolitical narratives and market sentiment being amplified ahead of the midterm elections.