US Stocks Movement | Strong Demand for AI Computing Power Drives a Broad Rally in the Optical Communication Sector, Credo Leads with Over 7% Gain

Glonghui, July 20 — The US optical communication sector extended gains at the open, with Credo rising over 7%, Lumentum and Coherent both up more than 6%, Marvell Technology up more than 4%, and Corning up over 3%. According to Barclays, although some companies have experienced stock price corrections recently due to market concerns, the fundamentals for demand related to AI network components remain strong, presenting buying opportunities on dips. The underlying driver for the sector’s rally continues to be robust demand driven by AI. Industry chain feedback indicates that ongoing growth in AI computing power investment is directly boosting demand for products such as optical modules and optical devices.