Reuters reports that the Trump administration is drafting restrictions on Chinese data center components.

If this policy moves forward, a few names could be worth keeping an eye on:

$Coherent(COHR)$  - One of the leading Western optical transceiver and laser suppliers, with deep exposure to AI infrastructure.

$Lumentum(LITE)$  - A major U.S. optical networking player that supplies hyperscale cloud customers.

$Fabrinet(FN)$  - Its manufacturing capacity outside China could become increasingly valuable as supply chains shift.

$Applied Optoelectronics(AAOI)$  - Expanding U.S. production, which makes it one of the purest domestic optical transceiver plays.

$Marvell Technology(MRVL)$  - Its DSP chips are a critical component inside next-generation optical transceivers.

If Chinese supply tightens, demand does not disappear. It simply flows elsewhere. That is the part of the story the market may still be pricing in.