Since the start of this year, the global fiber optic industry has seen a booming market of rising volume and price, with core product prices soaring. The price of G.657.A2 fiber has jumped from 32 yuan per fiber-kilometer last year to 240 yuan, a staggering 650% increase; mainstream G.652.D single-mode fiber spot prices have risen by over 400% in more than a year. In the A-share market, the fiber optic index has surged 85.1% this year, with three stocks including Yangtze Optical Fibre and Cable doubling in value.

The current high prosperity of the fiber optic industry is mainly driven by the explosive demand for AI computing power. With the rapid development of global AI large models, the construction of data centers and expansion of computing power networks have entered a peak period, driving exponential growth in demand for high-speed fiber optic transmission. Overseas demand is also strong, with overseas sales of leading domestic fiber optic enterprises growing by over 55% in the first quarter, and orders scheduled through the first quarter of next year.

Supply constraints have further exacerbated price hikes. Affected by rising raw material costs and limited capacity expansion, global fiber optic supply faces a phased shortage. Analysts believe that the development of the AI industry will continue to boost fiber optic demand, and the industry’s high prosperity is expected to last until 2027. With the accelerated advancement of the digital economy and computing power network construction, fiber optics, as a core material of new infrastructure, will see expanding market space, with leading enterprises set to fully benefit from industry dividends.