[Trend Report] Major Conference Approaching + Prices Continue to Rise Fiber Optic Cables May Enter an Upward Cycle

The three major A-shares indices all closed higher today: the Shanghai Composite rose 0.65%, the Shenzhen Component increased 2.04%, and the ChiNext Index gained 3.04%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets exceeded 2.4 trillion yuan, a decrease of over 250 billion yuan compared to yesterday. Most industry sectors closed higher, with electronic components, communication equipment, non-metallic materials, semiconductors, electronic chemicals, consumer electronics, and general equipment leading the gains. Oil and petrochemicals, coal, and chemical raw materials sectors declined against the trend. In individual stocks, over 4,500 stocks rose, with more than 70 hitting the daily limit.

The 2026 Optical Fiber Communications Conference and Exhibition (OFC) is a global event in optical communications and networking, scheduled to be held from March 15 to 19 at the Los Angeles Convention Center in the United States. This year’s conference will focus on three cutting-edge areas: AI-driven gigabit-scale data center network architecture, ultra-low latency transmission technology for hollow-core optical fibers, and inter-satellite laser communication systems. The NVIDIA GTC conference will also take place from March 16 to 19, 2026. As a global benchmark for AI computing power, this event will unveil new GPU core parameters such as Rubin and Fiman, and showcase technological breakthroughs and commercialization progress in core infrastructure components like CPO switches, power architectures, and liquid cooling solutions.

Additionally, media reports indicate that recently, the domestic optical fiber market has received a significant signal—prices for G.652.D single-mode optical fibers, the most widely used in communication and computing applications, have broken through 50 yuan per fiber-kilometer by some manufacturers, with the market average stabilizing above 40 yuan. Some quotes have reached as high as 50 yuan per fiber-kilometer, marking a record high in nearly seven years. Notably, since the end of 2025, retail prices for optical fiber cables have been rising continuously, with cumulative increases of 94% to 144% by February 2026. The price increases for special optical fibers are even more rapid: G.657.A2 used in military and data centers now costs 60-70 yuan per fiber-kilometer, while ultra-low-loss G.654.E can reach 240-260 yuan per fiber-kilometer, with monthly growth rates of 30% to 40%.

Guosheng Securities states that under the accelerated global investment in AI infrastructure, the optical fiber and cable industry is experiencing a significant upturn. Guotai Haitong points out that the rigid demand from intelligent computing centers for ultra-high bandwidth and low-latency transmission is a core driver of fiber demand, directly reshaping the demand logic of the fiber industry.

Guosheng Securities: The Optical Fiber and Cable Industry Is Entering a Significant Upturn

With the acceleration of global AI infrastructure investment, the optical fiber and cable industry is experiencing a notable boom. Fiber prices have more than doubled since 2025, with supply and demand temporarily tight. The industry is shifting from traditional telecom-driven demand to a new cycle driven by AI data centers and fiber-enabled drones.

Guotai Haitong: Intelligent Computing Centers Reshape Fiber Industry Demand Logic

The rigid demand from intelligent computing centers for ultra-high bandwidth and low-latency transmission is a key engine for fiber demand growth, directly transforming the demand logic of the industry. Compared to traditional data centers, a single intelligent computing center can require several times or even ten times the fiber demand; a typical GPU cluster with ten thousand cards inside a server may need tens of thousands of fiber-kilometers. The proportion of fiber demand driven by AI in data centers and DCI (Data Center Interconnect) scenarios is expected to surge from less than 5% in 2024 to 35% in 2027.

Wanlian Securities: Leading Domestic and International Manufacturers Accelerate Investment in Optical Technology and Liquid Cooling for AI Infrastructure

Top domestic and international companies are ramping up investments in optical technology and liquid cooling for AI infrastructure. NVIDIA recently invested $2 billion each in Lumentum and Coherent, and signed strategic agreements including multi-billion dollar procurement commitments and capacity rights for advanced laser components and optical network products, highlighting its focus on the critical role of optical communication in the AI computing industry chain. Meanwhile, Huawei announced its next-generation all-optical network solution “Smart Network, Smart Power” at MWC 2026, and ITU-T officially released the ION-2030 technical framework to promote intergenerational upgrades of optical networks. ZTE launched a modular liquid-cooled CDU supporting 400kW to 2MW flexible expansion, precisely matching high computing power cooling needs. These developments collectively reinforce positive expectations for AIDC construction, optical interconnects, fiber cables, and liquid cooling sectors.

Open Source Securities: Fiber Prices May Continue to Rise

As of March 4, the price of G.652.D single-mode fiber increased from 18 yuan per kilometer before New Year’s to 85-120 yuan per kilometer, a rise of nearly 650%. G.657.A1 fiber rose from 23 yuan to 115-135 yuan per kilometer, up about 487%. G.657.A2 fiber increased from 35 yuan to 210-230 yuan per kilometer, up approximately 557%. The magnitude and pace of these price increases indicate that the current rise is driven by explosive demand and supply capacity bottlenecks, not seasonal or routine cyclical adjustments. We believe that the “AIDC construction, DCI interconnect, and drone demand” create a triple resonance for fiber demand. Given the long expansion cycle and difficulty in increasing capacity of optical preform rods, supply may remain tight, supporting continued fiber price increases.

Galaxy Securities: Optimistic About the Sustainability of Fiber and Cable Price Increases

High demand growth, long expansion cycles, and clear industry competition patterns support the continued rise in fiber and cable prices. Driven by rapid development of AI and computing networks, fiber prices have been steadily increasing due to high expansion difficulty. Demand for DCI and all-optical networks has surged; according to CWW and CRU data, global fiber and cable demand will grow by 4.1% in 2025, with data center fiber and cable demand increasing by 75.9%. This will push global fiber demand to 880 million fiber-kilometers by 2027. On the supply side, the global optical preform rod expansion cycle is about two years, and overall capacity expansion has been conservative due to previous price pressures. The market currently favors specialty fibers, and considering demand and supply, fiber and cable prices are likely to continue rising.

Industrial Securities: Clear Upward Cycle in Industry

With AI data center expansion and new applications like drones, combined with the long cycle of optical preform capacity expansion, supply and demand remain mismatched, providing strong momentum for price increases. The industry is in a clear upward cycle.