Understanding the Market | YOFC surged over 20% in early trading, reaching a new high as NVIDIA released Scale-across network
YOFC's optical fiber cable surged over 20% in early trading, reaching a historic high of HKD 44.86, currently reported at HKD 43.96, with a transaction volume of HKD 1.222 billion. NVIDIA® Spectrum-XGS Ethernet technology launched by NVIDIA aims to address data center expansion issues and promote the development of the AI computing interconnection industry. Soochow Securities pointed out that this technology will become the "third pillar" of AI computing and emphasized opportunities in related industries such as optical interconnects. Zhongtai Securities mentioned that hollow-core optical fibers will be the main variety for future AI data center interconnections, and YOFC has won bids for related projects
According to Zhitong Finance APP, YOFC (06869) rose over 20% in early trading, reaching a high of HKD 44.86, setting a new historical high. As of the time of publication, it was up 19.07%, trading at HKD 43.96, with a transaction volume of HKD 1.222 billion.
In terms of news, NVIDIA recently announced the launch of NVIDIA® Spectrum-XGS Ethernet. This scale-across technology can combine multiple distributed data centers into a billion-watt AI super factory. With the surge in AI demand, the power and capacity of individual data centers have reached their limits. To achieve data center expansion, it is necessary to break the constraints of buildings, while existing commercial Ethernet network infrastructure cannot meet the demand due to high latency, high jitter, and unpredictable performance. Dongxing Securities pointed out that scale-across technology is expected to become the "third pillar" of AI computing following scale-up and scale-out, further driving the development of the AI computing interconnection industry, and it is essential to pay close attention to opportunities in related sectors such as optical interconnection.
Zhongtai Securities previously stated in a research report that hollow-core fiber, which uses air as the transmission medium, has two main characteristics: lower latency and lower loss, making it a primary type for future AI data center interconnection. The first commercial use of hollow-core fiber by China Mobile in July 2025 may mark an acceleration in the commercialization process, with YOFC being the only successful bidder at an actual bid price of approximately RMB 36,000 per core kilometer. The firm emphasized its focus on YOFC (leading in hollow-core technology capacity and already winning bids in related projects), among others
