Hong Kong stock concept tracking | AI drives explosive growth in data center construction, rapid growth in demand for optical cables (with concept stocks)

JPMorgan Chase loans $2.3 billion to acquire Oracle data centers. In recent years, with the rapid development of information technologies such as cloud computing, AI, and big data, the demand for computing power in data centers has shown explosive growth. The number and scale of large models in China are rapidly increasing, and daily activities are increasing rapidly. According to data from the CITIC Industry Research Institute, it is estimated that the Chinese data center market will reach 543.7 billion yuan in 2028, with a CAGR of 8.83% over the next five years. Guosen released a research report stating that the global data center industry has achieved rapid development in the past five years through cloud computing, with overall demand in major data center markets showing significant growth, pushing the pre-leasing rate to historical highs. According to CRU data, global optical cable demand will remain unchanged in 2024, but will see a recovery in 2025, with a growth rate of up to 6.2% and a total scale of 568 million fiber kilometers. The Chinese market is expected to transition from negative growth in 2024 to a growth of 2.3% in 2025, while the North American market is expected to grow by 15.9%. In 2024, the demand for optical cables in data centers will only account for 5% of the total demand for optical cables. According to CRU's estimates, this will increase to 11% by 2029, with the demand for optical cables in data centers and DCIs expected to grow rapidly. Hong Kong stocks related to fiber optics: YOFC (06869): The company's G.654.E fiber optics have made progress in communication trunk lines, direct connections to data centers, power communication, and other areas; OM4, OM5, and other high-end multimode fiber optics are getting more applications in data centers. In terms of hollow fiber optics that can break through the time delay limit, attenuation limit, and capacity limit of solid core fiber optics, the company has also worked with operators to verify the transmission performance of such products and their feasibility in complex pipeline environments, marking an important milestone in the industrialization of hollow fiber optics and their transmission systems from technical prototypes.