The Federal Communications Commission has banned the import of all new consumer-grade routers manufactured abroad, citing national security risks related to espionage and network attacks. Under the new rules, foreign router makers must obtain conditional approval, disclose foreign ownership influence, and present plans to shift production to the U.S. before importing or selling new models.

NetGear shares surged 9.8% to $24.23, marking its largest daily gain since August and erasing year-to-date losses by retesting December’s highs. The rally occurred as investors anticipate reduced competition from foreign entrants and potential market share gains for domestic router producers.

Despite the sharp advance, the stock faces resistance at the 260-day moving average, which currently sits just above trading levels. A breakthrough above this long-term trend line could signal further upside, while failure may prompt profit-taking among short-term traders.

Short interest has risen by 6.4% over two reporting periods, representing 8% of NetGear’s available float and indicating significant short-covering potential. Options traders are pricing in relatively low near-term volatility, with the Schaeffer’s Volatility Index at 51%, higher than 32% of readings from the past year.