NETGEAR, Inc. ( NTGR ) shares are trading higher Tuesday after the FCC added internet routers made in foreign countries to its covered list of prohibited products.

Netgear ( NTGR ) stock is among today’s top performers. Why is NTGR stock surging?

FCC Adds Foreign-Made Routers To Covered List

The FCC updated its Covered List to include all consumer-grade routers produced in foreign countries following a national security determination by Executive Branch agencies. 

The agencies concluded that foreign-produced routers pose "unacceptable risks" to U.S. national security and could introduce supply chain vulnerabilities and cybersecurity threats capable of disrupting critical infrastructure. 

Under the updated rules, newly manufactured foreign-made routers will not be eligible for FCC equipment authorization, effectively preventing new models from being imported or sold in the United States. 

The FCC noted that the restrictions apply only to new device models and do not impact previously approved products already on the market or in use. Officials also cited past cyber incidents involving foreign-made routers, including attacks targeting U.S. infrastructure, as part of the rationale for the decision.

The move could benefit U.S.-based manufacturers like Netgear ( NTGR ) by limiting competition from foreign-made routers in future product cycles. Netgear ( NTGR ) offers reliable, easy-to-use, high-performance networking solutions, including switches, routers, access points, software and AV over IP technologies.

Netgear Stock Surges Tuesday

NTGR Price Action: At the time of writing, Netgear ( NTGR ) shares are trading 15.19% higher at $25.41, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.