On August 28, Yangtze Optical Fibre and Cable (601869.SH) surged straight to the 10% daily limit within 3 minutes of A-share market opening, achieving "4 days 3 limit-ups," closing at 82.95 yuan per share with market capitalization breaking through 50 billion yuan to reach 51.7 billion yuan. On the Hong Kong stock market, Yangtze Optical Fibre and Cable (6869.HK) also demonstrated strong momentum, rising over 25% by market close to 55.95 Hong Kong dollars per share.

On the news front, NVIDIA released its fiscal 2026 second quarter earnings report (ending July 27) after U.S. market hours on August 27 local time, achieving revenue of $46.743 billion, up 56% year-over-year; data center revenue reached $41.1 billion, up 56.4% year-over-year. During the earnings call, NVIDIA's CFO stated that AI infrastructure spending is expected to reach $3-4 trillion by the end of this century.

Boosted by this news, optical module (CPO) and other computing hardware-related concept sectors surged strongly after market opening on the 28th.

In fact, NVIDIA unveiled its new Spectrum-XGS Ethernet technology at the recent HotChips conference. Since the beginning of this week, optical modules (CPO), optical chips, optical communications and other computing hardware sectors have maintained high momentum. Yangtze Optical Fibre and Cable hit daily limits on August 25 and 26 consecutively, and as of the close on the 28th, has accumulated a 41.23% gain for the week. CITIC Securities believes this technology release is expected to drive rapid growth in demand for next-generation transmission technologies like hollow core optical fiber, which offer ultra-low latency and high capacity advantages.

Meanwhile, market rumors suggested that Yangtze Optical Fibre and Cable's hollow core fiber products have significant synergy with NVIDIA's Ethernet technology and have been purchased and used by NVIDIA.

When contacted by phone as an investor, Yangtze Optical Fibre and Cable's staff stated that the company has not disclosed business content related to hollow core optical fiber externally at this time. From a business nature perspective, the company's products and NVIDIA's core products both belong to data center construction needs, but the company does not have an upstream-downstream or supplier-customer relationship with NVIDIA.

Yangtze Optical Fibre and Cable indicated that the company is continuously advancing the R&D and industrialization process of hollow core optical fiber and maintains a leading position in frontier optical fiber and cable products. However, the application of hollow core optical fiber is still in early stages, and related business has not yet had a significant impact on the company's financial data.

It's worth noting that after market close on the 27th, Yangtze Optical Fibre and Cable released its semi-annual performance report. In the first half of 2025, the company achieved operating revenue of 6.384 billion yuan, up 19.37% year-over-year; net profit attributable to shareholders was 296 million yuan, down 21.69% year-over-year; net profit attributable to shareholders excluding non-recurring items was 138 million yuan, up 15.00% year-over-year.

Public information shows that Yangtze Optical Fibre and Cable is a leading enterprise in China's optical fiber and cable industry, primarily producing and selling various standard specifications of optical fiber preforms, optical fibers, optical cables widely adopted by the communications industry, various optical modules based on customer needs, specialty optical fibers, active optical cables, submarine cables, as well as RF coaxial cables and accessories.

Zhongtai Securities judges that hollow core optical fiber is still in the early stages of commercial development. Historically, the optical fiber and cable industry's CR10 exceeds 90%, with Corning leading and China following. The competitive landscape in the future hollow core field may not change significantly. Given that the hollow core optical fiber market segment is just starting, the future competitive landscape may still be dominated by leading enterprises, though startups combined with major CSP manufacturers still have certain opportunities.

CITIC Securities states that hollow core optical fiber has significant advantages over traditional optical fiber. As data centers' demand for high bandwidth and low latency connections continues to rise, as an optical communication medium suitable for this scenario, optical fiber's application space will continue to expand. The firm remains optimistic about the long-term trend of "optical replacing copper" and expects optical fiber deployment within data centers to accelerate.