Broker: Optical Module Fears Overblown, Big Rally Coming in Q4

Bullish

What Happened

GF Communications released a note arguing that the US congressional proposal targeting optical modules is not a negative but a positive for Chinese optical module companies, as it only affects national security federal procurement and most US CSPs have already shifted to domestic suppliers.

Bottom Line

The broker believes the market has overreacted to US regulatory risks, setting the stage for a strong Q4 rally in Chinese optical module stocks.

Free preview — more China A-share & HK research · About Us · Legal & Privacy