YOFC (06869) saw a mid-session surge, currently up nearly 7%. At the time of writing, the stock rose 6.8% to HK$38.94, with a turnover of HK$925 million. Reports indicate that Meta is negotiating with Alphabet to use billions of dollars' worth of TPU chips in its data centers by 2027, alongside plans to lease chips from Google Cloud next year.
Zhongtai Securities noted that Alphabet has built a formidable AI moat through its integrated technology ecosystem—spanning chips (TPU), networking (OCS), models (Gemini), and applications (cloud computing/search/ads)—driving sustained capital expenditure growth. With upward revisions to TPU shipment forecasts, rising OCS adoption, and the ramp-up of 1.6T optical modules, hardware suppliers stand to benefit significantly.
Huatai Securities earlier highlighted AI-driven growth in data communications and ongoing advancements in hollow-core fiber applications. YOFC leads globally in R&D and industrialization of next-gen fiber technologies. Additionally, its subsidiary's optical interconnect components business—including MPO, AOC, and high-speed copper cables—has become a key growth driver, supported by expanding overseas operations amid North American AI data center construction.
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