Yangtze Optical Fibre and Cable (YOFC) stock soared 5.38% intraday on Friday, marking a significant rebound after recent steep declines in the optical communications sector.

The stock's recovery comes after two consecutive sessions of declines totaling over 12%, which were triggered by concerns over delays in CPO (Co-Packaged Optics) commercialization and substantial price cuts exceeding 60% for 800G optical modules. The previous correction was catalyzed by a research report from SemiAnalysis that pushed back large-scale CPO commercialization timelines to 2028-2029, significantly later than market expectations.

Supporting the rebound, southbound funds accumulated net purchases of YOFC for five consecutive trading days through June 10, with cumulative net inflows reaching HK$2.307 billion, indicating sustained institutional buying interest despite the recent sector headwinds. NVIDIA's strategy of advancing copper-based interconnects over optical solutions had also previously weighed on sentiment in the optical communications sector.