What happened

Shares of Oclaro (NASDAQ:OCLR) rose as much as 13.1% on Tuesday morning, reaching that peak near 10:40 a.m. EDT.

So what

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.

Fiber-optic cables plugged into a network router.

Image source: Getty Images.

Now what

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.

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.