Fiber-optics stocks popping after Huawei telecom deal

|By:, SA News Editor

Tech giant Huawei announced yesterday that the company had won a bid to create a fiber-optic network for China Telecom (NYSE:CHA). The Reconfigurable Optical Add/Drop Multiplexer, or ROADM, Network Project will take place along the Yangtze River. The project is the first intelligent ROADM WDM backbone network built in the country.

News of the project continues to boost fiber-optic stocks. Oclaro (OCLR +12.6%) rose the highest due to a preexisting supply relationship with China Telecom and the fact that the company provides the ROADM tech that’s in the title of the project.

Also up are Finisar (FNSR +7.9%), which makes ROADM line cards, and Lumentum (LITE +11%), an optical communications company. These fiber-optic companies also have existing business relationships in China, providing parts to ZTE and Huawei.

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