HK Stock Market Move | The concept stocks of optical communication continue to rise, and the AI inflation brings a new cycle of optical fiber. The optical fiber industry is expected to usher in a double-click opportunity.

The concept stocks of optical communication continued to rise. As of the time of writing, Hongteng Precision (06088) rose by 9.03% to 9.9 Hong Kong dollars; TIME INTERCON (01729) rose by 6.61% to 24.2 Hong Kong dollars; HUA HONG SEMI (01347) rose by 5.66% to 138.2 Hong Kong dollars; YOFC (06869) rose by 4.96% to 258.2 Hong Kong dollars. On the news front, recently, NVIDIA CEO Huang Renxun said in an interview that the next generation of artificial intelligence infrastructure will require a large amount of optical connections, as computational demand is rapidly increasing to the point where copper wires are no longer sufficient. In addition, NVIDIA and global fiber optic giant Corning jointly announced a long-term commercial and technical partnership agreement. This seems to indicate that "optical investment" is shifting from optical modules to back-end transmission equipment such as "optical fiber". EB SECURITIES stated that fiber optic manufacturers are transitioning from traditional communication materials suppliers to core suppliers for AI data centers, with valuation and performance expected to see a "double boost". Corning's product structure resonates with the AI data center construction cycle, and the market is re-evaluating it. The optical fiber new cycle brought about by AI inflation is also beneficial for domestic manufacturers, as North American orders spill over to domestic manufacturers, domestic manufacturers have higher barriers to entry in optical rod production capacity, overseas capacity continues to expand, domestic manufacturers' performance continues to improve, the AI construction cycle drives industry valuation upwards, bringing opportunities for a "double boost" in the optical fiber industry.