Shares of Oclaro (NASDAQ:OCLR) rose as much as 13.1% on Tuesday morning, reaching that peak near 10:40 a.m. EDT.
China-based technology giant Huawei won a contract on Monday night to build a sophisticated fiber-optic network for China Telecom (NYSE:CHA) in the fast-growing region around the Yangtze river. The project involves supplying a new generation of fast, secure, and easily reconfigurable fiber technology to 21 of China Telecom's network hubs.
Oclaro is a longtime strategic supplier to China Telecom and also has a long history of providing components for exactly the type of so-called ROADM cards that form the backbone of Huawei's solution.
The announcement also lifted other fiber-optic stocks with strong working relationships to Huawei. Optical transponder maker Finisar (NASDAQ:FNSR) jumped 7.2% higher, and laser component expert Lumentum (NASDAQ:LITE) saw a 9.6% gain as of this writing.
Oclaro shares have now doubled in value over the last 52 weeks as the fiber optic industry as a whole keeps building a head of steam on a global level.