For hyperscalers such as AWS, Microsoft, Meta, and Google, the consequence of a rushed ban could be costly. Shah warned that capacity deficits would produce "cost escalation and delayed AI cluster deployments," with lower utilization of expensive AI accelerators rippling through capital expenditure plans that collectively run into the hundreds of billions of dollars. "Sudden regulatory shifts risk creating hardware bottlenecks that could slow down deployment schedules for the world's largest cloud operators," he wrote. The Trump administration's Federal Communications Commission (FCC) is drafting a ban on U.S. imports of new Chinese optical transceiver models, with officials hoping to publish the measure before year-end, Reuters reported yesterday. Meanwhile, U.S.-listed optical networking stocks surged on Tuesday after the report first circulated, with Coherent rising 11%, Applied Optoelectronics gaining 18%, and Lumentum climbing 7%, as investors bet on order redirection to Western suppliers.