Spotlight Stocks: U.S. Optical Communication Giants Surge, Propelling Lian Ya and Guang Sheng to Full Gains with Sector-Wide Rally

Taiwan's optical communication sector rallied today (22) following a nearly 10% surge in U.S. peers Lumentum (LITE-US) and Coherent Corp (COHR-US) during the prior trading session. In Taiwan, high-priced optical communication stocks Lian Ya (3081-TW) and Guang Sheng (6442-TW) quickly surged to their daily price limits at market open, marking their second consecutive day of gains and leading a broad rally across the sector.

Lumentum, a major optical communications player, was a top-performing AI-related stock at the beginning of 2026. After two months of correction, the stock has recently rebounded as Barclays analysts upgraded Coherent from 'Equal Weight' to 'Overweight,' citing attractive valuations and a positive outlook for optical and commercial laser components.

Coherent Corp benefited from its role as a CPO (Co-Packaged Optics) supplier to NVIDIA (NVDA-US). Additionally, a three-year supply agreement with a leading indium phosphide (InP) manufacturer has eased raw material constraints, further boosting investor confidence and driving its share price higher.

Today, in addition to Lian Ya and Guang Sheng hitting their daily price limits, other sector players such as Guang Huan (3234-TW) and Wave Optics (3163-TW) also reached their upper price limits during trading.

Other notable gainers included Lian Jun (3450-TW), Shang Quan (3363-TW), Tong Xin (6426-TW), Hwa Hsing Optoelectronics (4979-TW), Qian Ding (4908-TW), Dong Dian Optoelectronics (6588-TW), and J-Technologies KY (4977-TW), all of which posted gains exceeding half of their daily price limits.

Institutional research reports highlight that as AI computing demand surges, traditional copper-based data transmission is hitting physical bottlenecks and power consumption limits. Silicon photonics, with its advantages in high bandwidth, low latency, and low power consumption, is increasingly seen as a critical solution for overcoming data center transmission constraints. The market remains optimistic about the long-term growth trajectory of the optical communications industry.