YOFC shares plummeted 5.21% in early intraday trading on Wednesday, as the optical communication sector faced a sharp reversal following a strong rally the previous day.

The decline was driven by broad profit-taking pressure across the sector. On the prior trading day, optical communication stocks had surged on optimism around AI computing demand and widening InP supply gaps, with YOFC climbing approximately 8%. However, traders locked in gains, dragging down YOFC and peers like ZJ Innolight and CIG. Additional concerns over fiber industry capacity expansion potentially breaking supply bottlenecks, and fund redemption pressure following YOFC's 62% cumulative decline in July, further weighed on sentiment.