According to a research report from Morgan Stanley, Microsoft (MSFT.US) is reportedly urging the Trump administration and the U.S. Federal Communications Commission (FCC) to halt a plan that would ban imports of Chinese-made optical transceivers used in AI data centers.

Earlier reports indicated that the Trump administration and the FCC were considering an import ban on new Chinese optical transceivers.

Driven by this news, shares of Chinese optical transceiver companies such as Zhongji Innolight (300308.SZ), T&S Communications (300394.SZ), and Accelink Technologies (002281.SZ) underwent significant revaluation.

The bank believes that although it remains uncertain whether the regulatory cloud has been fully lifted, the latest development is a positive for Chinese optical transceiver companies.

The bank points out that it is difficult in the short term to find or build alternative capacity to replace Chinese optical transceiver supply, and U.S. suppliers may also need to establish factories outside the United States.

Any supply chain disruption could also lead to delays in data center construction, which would be a negative factor for the entire AI supply chain, not just for optical transceiver manufacturers.