YOFC surges as fibre prices tighten in AI data centres

Optical fibre markets are tightening as AI data centre expansion drives increased demand and pricing pressure across global suppliers.

• YOFC surges more than 30% to reach a record in Hong Kong

• Fibre pricing trends signal stronger upstream leverage in the supply chain

The facts

Fujikura has increased prices for data centre interconnect cables by approximately 30% and raised its profit forecasts. Corning is expanding its optical fibre production after signing a multi-billion-dollar supply contract with Amazon on 8 June. YOFC rose over 30% on the Hong Kong Stock Exchange to reach a record of HK$285. Global supply of optical fibre preforms has been unable to meet demand since January, with capacity near full utilisation. YOFC has been ranked first globally in the production of preforms, optical fibres, and optical cables since 2016.

The assessment

AI data centre demand is feeding through to the optical interconnect layer, with pricing power shifting upstream as fibre supply tightens. Fujikura's pricing actions and Amazon's deal with Corning show that hyperscale buyers are locking in multi-year fibre commitments before capacity frees up. YOFC's record reflects how quickly the market is reappraising connectivity hardware as a critical bottleneck. For BTW readers, optical fibre availability determines how much bandwidth can actually flow between data centres — the physical layer of internet interconnection is now competing with chip supplies for capital.

What to watch

The question is whether fibre price increases extend beyond DCI cables to wider optical categories. How other hyperscalers will respond to Amazon's multi-year fibre supply lock-in.