China Galaxy Securities says compute-network construction and AI-driven demand
are materially lifting optical-fiber demand. Both expansion at compute-network
backbone layers and upgrades to intra-data-center optical interconnects are
creating significant incremental volume. The market is in a structural shortage
as demand growth far outpaces supply release; China Galaxy expects the supply
gap may continue to widen. Leading suppliers with high preform self-sufficiency
should see price gains convert into outsized margin expansion. The fiber sector
is shifting from a traditional telecom cyclical to a higher-growth
compute-infrastructure theme.
