Fiber Optic Prices Skyrocket 650% Amid AI Boom, Changfei Fiber Shares Surge
Fiber Market in Frenzy as AI Demand Reshapes Industry
The A-share market witnessed a dramatic surge in fiber optic stocks on March 10, with Changfei Fiber (601869.SH) hitting its daily price limit. Major players like Fuji Communication, Hengtong Optic, and Zhongtian Technology followed suit, riding the wave of an AI-driven infrastructure boom that's transforming the fiber market.
Price Surge Defies Expectations
Industry data reveals shocking price movements in the fiber market. The spot price for G.652.D fiber - the industry's workhorse - has shattered the 50 yuan barrier. Open Source Securities reports show even more startling figures: prices for single-mode G.652.D fiber have leapt from 18 yuan per kilometer before Spring Festival to between 85-120 yuan - a staggering 650% increase. Even more specialized G.657.A1 fibers haven't been spared, seeing nearly 500% price hikes.
AI: The Hungry Giant Consuming Fiber
What's driving this sudden scarcity? Guotai Haitong Securities analysts point to AI's insatiable appetite:
- Tenfold demand spikes: A single intelligent computing center now requires several times more fiber than traditional data centers
- Mega-cluster consumption: Just connecting servers in large GPU clusters can devour tens of thousands of core-kilometers
- Market transformation: AI-driven data center interconnect needs will balloon from under 5% to 35% of total demand by 2027
China's Fiber Dominance Strengthens
The global supply picture tells another story. CRU data shows China produced 372 million core kilometers in 2025 - over half the world's total output of 662 million. As nations race to build AI infrastructure, Chinese manufacturers hold increasing sway over this critical supply chain.
Investors See New Growth Story
Industrial Securities analysts note a fundamental shift in how markets value these companies. Once seen as cyclical manufacturers, leading fiber producers are being re-rated as growth stocks tied to the long-term AI infrastructure boom.
The optical module sector's strong performance now appears to be spreading across the entire fiber value chain. For investors watching the AI revolution unfold, this might represent another chance to capitalize on computing power's building blocks.
Key Points:
- G.652.D fiber prices up 650% since January
- Single AI data centers require 10x more fiber than traditional facilities
- China produces 56% of global fiber output
- Industry valuation shifting from cyclical to growth status