HK Stock Market Move | YOFC (06869) rose nearly 7% as Google's TPU chip sparked attention; institutions are optimistic about AI driving growth in the communication sector.

YOFC (06869) rose in midday trading, up nearly 7%, as of the time of writing, it is up 6.8% at HKD 38.94, with a trading volume of HKD 9.25 billion. On the news front, it is reported that Meta is in negotiations with Google to use TPU chips worth billions of dollars in its data centers in 2027, and plans to rent chips from Google Cloud next year. Zhongtai research report pointed out that with a complete technological ecosystem from chips (TPU), network (OCS), models (Gemini) to applications (cloud computing/search/advertising, etc.), Google has built a strong AI moat and continues to drive capital expenditure growth. With the expected increase in TPU shipments, OCS penetration rate improvement, and the volume of 1.6T optical modules, related hardware suppliers will see significant development opportunities. Huatai previously pointed out that AI and data communications drive growth, and the application of hollow core optical fibers continues to expand. In terms of next-generation fiber optic technology, the company's research and industrialization of hollow core optical fibers is globally leading. In addition, the company's optical interconnect components business, including MPO, AOC, and high-speed copper cables laid out by its subsidiary EverProX Technologies, has become a strong growth point, benefiting from the construction of AI data centers in North America, the company's overseas business continues to expand.