AI Computing Infrastructure Drives Earnings Surge Across China’s Optical Fibre Sector

According to Eastmoney Choice data, 27 out of 70 A-share listed optical and fibre optic cable enterprises have released their half-year performance forecasts for 2026 as of 16 July, with 19 companies recording year-on-year growth in attributable net profit. The robust earnings expansion stems from sweeping structural changes reshaping the optical communication industry, driven by large-scale construction of national AI computing clusters and fast-growing demand for high-end specialised optical fibres.

Listed industry leaders deliver the most striking profit growth, underpinned by solid technical reserves, high-end production capacity and stable premium client resources. Yangtze Optical Fibre and Cable Joint Stock Limited Company projects its 2026 half-year attributable net profit will rise between 711 per cent and 914 per cent year on year, ranging from RMB 2.4 billion to RMB 3 billion. Hengtong Optic-Electric Co., Ltd. forecasts a year-on-year profit increase of 86.94 per cent to 121.20 per cent, with net profit sitting between RMB 3.016 billion and RMB 3.568 billion. Zhongtian Technology Co., Ltd. estimates half-year net profit growth of 50 per cent to 60 per cent, registering RMB 2.352 billion to RMB 2.508 billion.

Corporate disclosures confirm accelerated data centre development has fuelled sustained growth in domestic and overseas orders for next-generation optical fibre products, alongside tightened industry supply balances. Escalating artificial intelligence adoption and rising capital expenditure on global computing infrastructure further lift market demand and product pricing levels across optical communication segments. Enterprises with independent preform manufacturing capabilities, scalable high-end capacity and established overseas computing client partnerships will retain solid profit advantages amid the ongoing industry upswing.

A fundamental shift in market demand structure underpins the sector’s current volume and price upturn. Traditional growth drivers centred on telecom operator bulk procurement have given way to AI data centre construction as the core expansion engine in 2026, with market requirements increasingly concentrated on high-performance specialised optical fibres. Extended construction cycles for new optical preform production lines constrain rapid supply expansion, creating persistent supply and demand imbalances that support continuous product price increases.

Dual growth momentum from domestic and overseas markets sustains industrial prosperity. National integrated computing network development and large-scale optical network upgrading consolidate domestic demand fundamentals, while global data centre expansion and overseas operator digital transformation drive robust outbound orders for Chinese high-end optical fibre products.

Industry data compiled by CRU validates the sector’s strong operational momentum. Global data centre optical fibre demand surged 75.9 per cent year on year in 2025, with 2026 demand projected to reach 91.6 million core kilometres, representing a 32 per cent annual increase. Market projections indicate total demand will climb to 128 million core kilometres by 2030, with AI-specific optical fibre demand accounting for over 80 million core kilometres of the total volume.

Substantial price hikes across optical fibre categories have widened corporate gross profit margins. Standard G.652.D optical fibre spot prices in China rose 165 per cent month on month and 418 per cent year on year in March 2026. Premium G.657.A2 specialised optical fibres tailored for high-end computing scenarios recorded an even sharper rally, jumping from RMB 32 per core kilometre in 2025 to RMB 240 per core kilometre in March 2026, marking a 650 per cent price increase.

Long technical iteration cycles impose tangible supply-side constraints on rapid capacity expansion. New optical preform production facilities require 18 to 24 months for full construction, commissioning and mass production. Capacity expansion initiatives launched by leading manufacturers throughout 2026 cannot deliver immediate output growth, failing to match the explosive surge in market requirements. Industrial analysis from Everbright Securities estimates a global optical fibre supply shortfall rate of 16.4 per cent for the full year 2026.

Current market tightness will continue to lift industrial profitability across the short term. The sector will enter a critical phase of high-end upgrading and independent technological advancement over the medium and long term. Industrial participants will accelerate domestic breakthroughs in high-end optical preforms, specialised fibre raw materials and core production equipment to strengthen whole-industry self-reliance. Technical achievements such as hollow-core optical fibres will undergo continuous production optimisation and cost reduction to support large-scale commercial adoption.

Refined industrial standards and precise quality control systems will be established alongside evolving AI industry regulations. The optical fibre and cable sector will advance beyond cyclical volume and price growth, steadily moving toward high-quality development characterised by technological sophistication, industrial autonomy and global operational competitiveness.