China's optical suppliers extend sell-off as fears of slower AI growth trump upbeat earnings

Shares of major Chinese optical communications suppliers slumped on Friday before clawing back some of their losses, extending a two-day sell-off despite upbeat third-quarter earnings driven by the global artificial intelligence infrastructure boom.

During morning trading in Shenzhen, Chengdu-based Eoptolink Technology dropped as much as 15 per cent, while Suzhou TFC Communication slid 10.3 per cent and industry leader Zhongji Innolight fell over 7 per cent.

Innolight on Thursday posted a 174 per cent surge in third-quarter net profit to US$1.29 billion, as revenue jumped 172 per cent, driven by the global artificial intelligence infrastructure boom.