Prices have increased by over 400% year-on-year! The fiber optic concept is collectively strong, with two leading companies already doubling this year.

Fiber-optic concept saw strong early trading performance on April 3. Huiyuan Communications, Fujing Technology, and Xinneng Taishan hit the daily limit; Tengjing Technology, Opto-Mechanics Technology, and Changguang Huaxin surged by more than 10%; Hengtong Optic-Electric, Hisense? Technology, and Zhenfei Optical Fiber also led the gains.

Fiber price hike wave spreads globally

On the news front, the fiber industry’s price-hike wave is spreading worldwide. UBS’s latest research report, citing the newest data from industry research firm CRU, shows that the spot price of China’s G.652D bare optical fiber reached RMB 83.40 per 1km in March 2026 (about $12.07), up 165% month-over-month from January 2026. The year-over-year increase is as high as 418%. This price has already accumulated more than a 400% increase since May 2025, and it is also breaking through the prior cycle high of RMB 78.80 per 1km for the first time.

Rising fiber prices are no longer confined to the China market. CRU data shows that the price of Europe’s G.652D bare optical fiber reached €7.94 per 1km in March 2026 (about $9.1), up 136% month-over-month from January 2026, and up 159% year-over-year.

The price of G.657A1 bare optical fiber is also climbing sharply. CRU data shows that the month-over-month price increases for G.657A1 bare optical fiber in Europe and the United States, compared with January 2026, reached 130% and 69%, respectively.

According to the transmission-grade classification under ITU standards, single-mode optical fiber can be divided into types such as G.652/G.653/G.654/G.655/G.656/G.657. Among them, G.652D is the most stringent indicator among all G.652 grades, with good compatibility; it is a common choice for fiber-to-the-home (FTTH) and access networks. G.657 has excellent bend-resistant characteristics; its bend radius can be achieved at 1/4 to 1/2 of the bend radius of conventional G.652 optical fiber. It is suitable for scenarios with space constraints or potentially frequent bending, such as inside data-center server racks and wiring junction boxes in hallways.

Benefiting from the data center construction wave

In the market’s view, the main driver of the sharp rise in fiber prices is the global data center construction wave, with AI application driving rapid growth in fiber demand for data centers.

According to CRU’s latest report, global data center fiber demand in 2026 is expected to reach 91.6 million fiber-kilometers, up 32% year-over-year. Depending on specific application scenarios, it can be seen that in 2026, fiber demand for AI applications, non-AI applications, and data center interconnect (DCI) applications all grows at a relatively fast pace. Looking ahead to 2030, global data center fiber demand is expected to reach 128 million fiber-kilometers, of which fiber demand for AI applications exceeds 80 million fiber-kilometers, becoming an important growth driver.

Four companies account for nearly 50% globally

Looking at the domestic market, the landscape among leading companies in the fiber and cable industry is relatively stable, with major players such as Yangtze?? Fiber? (ZF?)? Hengtong Optic-Electric? Zhongtian Technology, and FiberHome.

According to CNBC’s statistics, in 2025, Zhenfei Optical Fiber accounted for 14.6% of the global optical fiber market, ranking second worldwide, behind Corning in the United States. In 2025, Corning’s share in the global optical fiber market was 19.5%. Our country’s Zhongtian Technology, Hengtong Optic-Electric, and FiberHome ranked third, fourth, and fifth globally, with market shares of 11.4%, 11.2%, and 10.2%, respectively.

Institutions are optimistic about the fiber industry

Previously, fiber optic and cable products mainly served telecommunications operators’ network construction, and were applied in scenarios such as 4G/5G communication networks, fiber-to-the-home (FTTH), and backbone transmission networks. In recent years, with the development of artificial intelligence, large-model training, and cloud computing, global compute-power demand has been growing rapidly. The construction of large data centers and AI training clusters continues to expand. As an important component of the compute-power infrastructure, optical communication networks are playing an increasingly prominent role in AI data centers.

CITIC Securities Construction Investment said that in February this year, China exported 3,779.9 tons of optical fiber with a value of RMB 790 million, up 63.6% and 126.8% year-over-year, respectively. If converted into kilometer equivalents, China’s export of optical fiber was about 25.2 million fiber-kilometers in February, accounting for around 65% of China’s effective monthly fiber output; if optical fiber included in cable exports is added, the export proportion of optical fiber is even higher. In summary, overseas buyers are essentially snapping up the optical fiber produced in China, and China’s fiber suppliers are in a “not worried about selling” situation. Therefore, the market does not need to be too concerned about domestic telecom operators’ fiber centralized procurement. Overall, overseas demand for optical fiber is jointly driven by telecom networks, AI, and drones, leading to high growth in demand and driving prices to keep rising, putting the industry in a high-valuation/strong-cycle period.

Kaiyuan Securities also believes that “AIDC construction, DCI interconnection, and drone demand” form a triple resonance in fiber demand. On the supply side, optical fiber preform (light rod) production has characteristics such as a long capacity expansion cycle and high difficulty, which leads to ongoing supply tightness or continued tight supply. As a result, fiber prices may continue to rise.

Two leading stocks have already doubled within the year

When looking at individual stocks, many companies within the fiber-optic concept have performed strongly this year. For example, Zhenfei Optical Fiber and Hengtong Optic-Electric have already doubled since the beginning of this year, rising by 203.13% and 134.41%, respectively. Tongding Interconnection, Deko Lee, Zhongtian Technology, Tianfu Communications, Tefo Information, FiberHome, and Fiber Optic? Technology have also seen gains of more than 50% within the year.

From the perspective of leveraged capital, Tianfu Communications and Hengtong Optic-Electric have been net bought by margin financing of more than RMB 1 billion within the year, specifically RMB 3.495 billion and RMB 1.305 billion, respectively. Zhenfei Optical Fiber, Tongding Interconnection, and others have seen net purchases by margin financing of over RMB 100 million.

（Source: Eastmoney Research Center）