YOFC (06869) dropped nearly 8% in Hong Kong trading, slumping 7.64% to HK$94.95 with turnover reaching HK$14.22 billion. The sell-off follows Corning's second-quarter results, which slightly beat expectations but still triggered a share price plunge of over 20%.

Analysts point out that Corning's net profit margin has surged significantly, confirming that AI data center fiber has shifted from being scale-driven to high-value-add driven. However, the implied sequential growth rate for the third quarter has declined, and the company plans to substantially increase fiber and optical connection capacity, indicating that global supply bottlenecks are being actively dismantled.

Nomura previously warned that if new entrants can successfully develop high-end products, such as hollow-core fiber and multi-core fiber, and effectively execute their capacity expansion plans, market competition will intensify. Existing players may face pressure on margin expansion. Additionally, concerns over the monetization of massive AI infrastructure capital expenditures have led to capital rapidly exiting crowded tech concepts.