Optical communication concept stocks are leading gains in the Hong Kong stock market. At the time of writing, YOFC surged 18.19% to HK$131.9; TIME INTERCON rose 8.94% to HK$17.54; CIG increased 5.7% to HK$67.75; and FIT HON TENG advanced 3.4% to HK$5.78. The positive movement follows reports that key enterprises in the "Optics Valley" maintained operations during the Lunar New Year holiday. A business manager from Huagong Tech's optical module division stated that the company's production bases in Wuhan and Thailand operated at full capacity, resuming operations on the first day of the new year to ensure mass production and delivery of high-speed optical modules like 1.6T and 800G. Orders for the company's connectivity business are scheduled until the fourth quarter of 2026, with AI high-speed optical module production lines running at full capacity 24 hours a day. Additionally, YOFC's production lines across its bases remained fully operational during the holiday period. Industrial Securities released a research report indicating that the combined capital expenditure guidance for four major cloud service providers—Amazon, Google, Meta, and Microsoft—is projected to reach approximately $5.987 trillion by 2026, representing a 67% year-on-year increase. This reflects the continued strong demand for global AI computing power amid ongoing technological competition. As data centers evolve toward hyper-scale clusters, high-speed optical modules such as 1.6T and even 3.2T are accelerating toward commercial use, with cutting-edge technologies like silicon photonics and CPO making continuous breakthroughs. Massive computing demands are driving data centers into a phase of large-scale expansion, leading to widening supply-demand gaps for key infrastructure components such as optical fibers and liquid cooling systems, sustaining high growth across multiple segments of the industry chain.
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