Yangtze Optical Fibre and Cable (YOFC) saw its stock price soar by 5.17% during Tuesday's intraday session, continuing its recent strong performance.

The rally is primarily driven by a global fiber optic supply crunch. Industry reports indicate that key supplier Fujikura raised prices for DCI interconnect cables by 30% due to slow capacity expansion amid surging demand from North American AI data centers. Similarly, Corning is facing delivery pressures and planning capacity expansion for NVIDIA. Analysts note a persistent undersupply of fiber preform since January, with global capacity nearing full utilization.

YOFC, which has maintained the world's leading market share in fiber preform, optical fiber, and optical cable for nine consecutive years, is positioned as a prime beneficiary of this supply-demand reversal. The company's recent Q1 report showed a gross margin of 41.51%, up 13.67 percentage points year-over-year, with net profit surging 226.4%. Its complete self-sufficiency in fiber preform allows it to fully capture the pricing upside in the current market environment.