YOFC (06869), a leading optical fiber and cable manufacturer, saw its stock price soar by 21.30% in afternoon trading, continuing a remarkable trend that has seen the company's value double within a month. The surge comes as the demand for advanced optical fiber technologies, particularly hollow-core fiber, is skyrocketing due to the rapid expansion of AI data centers and their interconnection needs.

The catalyst for this surge appears to be linked to NVIDIA's recent unveiling of its Spectrum-XGS Ethernet technology. This innovative "scale-across" concept aims to integrate multiple geographically dispersed data centers into unified gigascale AI superfactories, addressing power and space constraints. As a result, the need for high-performance, long-distance interconnections between distributed data centers has become crucial, putting YOFC's hollow-core optical fiber technology in the spotlight.

YOFC has positioned itself at the forefront of this technological revolution, winning key contracts in the commercialization of hollow-core optical fiber. Notably, the company was the sole winning bidder for China Mobile's first commercial hollow-core optical fiber line, with a contract price of approximately 36,000 yuan per core-kilometer. Additionally, China Telecom's recent bidding rounds for hollow-core fiber have seen prices ranging from 37,000 to 50,000 yuan per core-kilometer, indicating strong market demand. As the market expands and production capacity increases, analysts expect hollow-core fiber prices to stabilize at competitive levels, potentially driving further growth for YOFC.