On Thursday, optical communication concept stocks declined broadly, with Applied Optoelectronics (AAOI.US) dropping more than 5%, Coherent (COHR.US) falling 4%, and POET Technologies (POET.US) and Corning (GLW.US) each down more than 3%.

Marvell Technology (MRVL.US) and Nokia (NOK.US) fell nearly 3%, while Lumentum (LITE.US) dropped more than 2% and Credo Technology (CRDO.US) declined over 1%.

On the news front, according to institutional estimates, data centers across the United States will face a net power gap of 32GW from 2026 to 2028.

The data center power gap may constrain the expansion of supply chains including ASICs, storage, and optical modules, weighing on expectations for production capacity growth in the optical communication industry.