Fiber optic giant signs another billion-level contract, Chinese fiber optic cable manufacturers start systematic overseas expansion.

On June 9th, the fiber optic concept continued to strengthen, with Hengtong Optic Electric soaring by the daily limit in the afternoon, gaining 3 consecutive daily limits in just 6 days, reaching a new historical high in stock price, and surpassing a market value of 250 billion yuan. Changfei Optic also hit the daily limit again, closing at 484.33 yuan per share, with the stock price rising more than 10 times compared to a year ago. In addition, stocks like Zhongtian Technology and Fiberhome Communications were up more than 8%. On the news front, on June 8th local time, Amazon announced a multi-billion dollar agreement with Corning Inc. to purchase fiber optics, optical cables, and connectivity solutions to support its expansion of data centers across the United States. The agreement will create 1000 high-skilled jobs and hundreds of construction jobs at Corning's factory in North Carolina. This move is a continuation of Amazon's announcement last year of an additional $10 billion investment in cloud infrastructure in the state. According to a senior industry analyst quoted in the Securities Times, fiber optics are being given AI attributes similar to optical modules and PCBs, transitioning from a traditional communication transmission medium to a key component supporting AI computing networks. This restructuring driven by underlying demand is supporting the current favorable industry conditions. Guosheng Securities pointed out in a research report that the high concentration of fiber optic production capacity in the United States, particularly among a few manufacturers like Corning, makes overseas demand a core driving force in this market cycle. Chinese fiber optic and cable manufacturers are now systematically expanding overseas, marking a shift from past cycles driven solely by domestic demand from a single market and customer type. This cycle of rising fiber optic prices is driven by resonating demand from multiple global entities, and the sustainability and elasticity of prices are expected to be superior to previous cycles.