Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) saw its stock surge by 15.89% in intraday trading, with its A-shares hitting the daily limit-up. The Hong Kong-listed shares (06869.HK) jumped to HK$37.26, with a substantial turnover of HK$868 million, underscoring strong investor interest.
The rally comes in the wake of recent statements from key players in the AI industry. Google's AI infrastructure head, Amin Vahdat, emphasized the need to double AI computing power every six months and achieve a 1,000-fold increase over the next four to five years to meet escalating AI service demands. Additionally, reports suggest that Meta Platforms is considering a multi-billion dollar investment in Google's Tensor Processing Units (TPUs) for its data center expansion, further highlighting the growing appetite for advanced AI infrastructure.
YOFC's strong performance is backed by its leading position in the R&D and industrialization of hollow-core fiber, a critical component for high-speed data transmission. The company's optical interconnect components business, including MPO, AOC, and high-speed copper cables, has become a significant growth driver, benefiting from the expansion of AI data centers in North America. Analysts at Huatai Securities expect YOFC's profitability to improve structurally as higher-margin AI-related businesses gain market share, positioning the company favorably in the rapidly evolving AI and data center landscape.
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