Market Insights | YOFC's fiber optic cable surged over 18% intraday, Lumen secured a $5 billion AI-related product order, and overnight US stocks rose by 90%
YOFC's A-shares and H-shares both saw an increase of over 18% during the trading session. In the US stock market, fiber optic stock Lumen Technologies surged by 93% and secured a $5 billion AI-related product order. Additionally, the company reached an agreement with Corning to supply a large amount of next-generation optical cables, providing huge capacity for cloud data centers. Microsoft announced a collaboration with the company, where Lumen's private connection architecture will link to the growing data centers. The development of AI data centers has driven the demand for interconnection between data centers, benefiting optical cables and more. While the construction of traditional communication networks by the three major domestic operators is mature, more efforts are needed for the construction of DCI direct connections
According to the information from Zhitong Finance and Economics APP, YOFC (06869) A-shares hit the daily limit up, while H-shares surged over 18% intraday. As of the time of writing, it rose by 11.01% to HKD 8.57, with a turnover of HKD 17.8913 million.
On the news front, the U.S. fiber optic stock Lumen Technologies surged 93% last night. The company announced that due to the soaring demand for its artificial intelligence connectivity products, it has secured a new business of USD 5 billion and is expected to have an additional USD 7 billion in AI sales opportunities in the future. On August 2nd, the company reached an agreement with Corning to supply a large amount of next-generation optical cables, which will more than double the intercity fiber optic mileage in the United States, providing huge capacity for major cloud data centers, with demand mainly coming from AI workloads. On July 25th, Microsoft announced a new partnership with the company, stating that the company's Lumen private connection architecture will help it connect to the growing data centers.
The Zhongtai Communications team pointed out that the rapid development of AI data centers is driving the demand for interconnection between data centers (DCI). Given the large capacity and other characteristics of data processed by AI data centers, next-generation fiber optic dense cables will benefit greatly. The construction of traditional communication networks by the three major domestic operators is relatively mature. However, there is still a need to increase the construction of DCI, especially direct DCI. The positive guidance on domestic DCI interconnection may guide the future direction and procurement volume of fiber optic cable purchases by operators