HK Stock Market Move | YOFC (06869) up by over 19% again, internet giants significantly increase AI capital expenditure, high-speed copper cable demand expected to increase significantly.

YOFC (06869) rose more than 19%, as of press time, up by 16.85%, to HKD 23.3, with a turnover of HKD 1.99 billion. On the news front, Alibaba Group CEO Wu Yongming announced on February 24 that in the next three years, Alibaba will invest over RMB 380 billion for the construction of cloud and AI hardware infrastructure, exceeding the total of the past decade. Morgan Stanley believes that other internet giants will also increase their spending. It is reported that Microsoft, Amazon, Google, and Meta have recently announced plans to further increase investments by 2025, with a total of an astonishing $320 billion planned for AI technology and data center construction. Huaxin Securities pointed out that the sales of high-speed copper cables have been continuously increasing, serving as server connections and interconnections in decoupled switches and routers. It is expected that the compound annual growth rate of high-speed copper cables from 2023 to 2027 will be 25%, and by 2027, the shipment volume of high-speed copper cables is expected to reach 20 million units. Yangtze Optical Fibre And Cable Joint Stock's subsidiary, Changxinsheng, specializes in AEC, ACC, DAC, and copper cables, and to address industry competition issues, Yangtze Optical Fibre And Cable Joint Stock will transfer Changxinsheng to its subsidiary Broadex Technologies. Changxinsheng has collaborations in the AEC field with domestic companies such as Hanwuli and ByteDance.