YOFC (06869) opened sharply higher by nearly 15%. As of writing, the stock was up 14.97%, trading at HKD 74.9, with a turnover of HKD 66.36 million.

Overnight, Corning's stock price surged over 15% to a record high. To keep pace with the artificial intelligence boom and advance large-scale data center construction, Meta has committed to paying Corning up to $6 billion by 2030 to procure the optical fiber cables required for AI data centers.

To meet the demands of major clients like Meta, Google, and Microsoft, Corning is expanding its factories. Upon completion, this facility will become the world's largest optical fiber cable plant, forming part of an industry-wide expansion plan valued in the trillions of dollars.

Mike O'Day, the head of Corning's optical fiber business, emphasized that meeting demand is the company's primary challenge, noting that Meta's data center in Louisiana alone requires 8 million miles of fiber.

First Shanghai research notes that YOFC is a global leader in the optical fiber and cable industry, consistently maintaining the world's top market share in fiber preforms, optical fibers, and cables. The company possesses the highest level of integration across the "PCVD+VAD+OVD" three major preform manufacturing processes and has strong cost control capabilities.

Although YOFC's performance was under pressure in the first half of 2025, the downward trend of both volume and price for fiber optic cables in the telecom market is nearing its end. The company is poised to fully benefit from the domestic cycle bottoming out and recovering, overseas expansion providing a hedge, and AI computing power driving demand upgrades, and is about to enter an upward performance cycle.