Domestic telecommunications equipment and optical communications stocks are all showing strong gains early on the 9th.
It is interpreted that buying is pouring in as demand for ultra-high-speed optical communications network infrastructure surges with the global trend of expanding artificial intelligence (AI) data centers.
At 9:27 a.m. on the KOSDAQ market, Mercury(100590) was hitting the daily limit up, soaring 30.00% from the previous day to 4,355 won. Next, RF Materials(327260) was up 19.71% at 41,300 won, and WooriNet(115440) was also trading 19.56% higher at 8,740 won.
At the same time, Sungho Electronics rose 13.17%, LiComm 12.44%, and Lightron Fiber-Optic Devices and Taihan Fiberoptics were up 10.30% and 9.56%, respectively.
The strength in domestic optical communications and telecommunications equipment shares appears to be driven by expectations that consumption of optical communications and telecom equipment components will expand as AI data centers grow. In AI data centers, vast amounts of data must be transmitted and received quickly between servers, so securing optical communications infrastructure that enables high-speed, high-capacity transmission is considered a key element.
News of a large supply contract between U.S. mobile carrier Verizon Communications Inc. and optical communications company Corning also spurred buying sentiment. Verizon Communications Inc. said on the 8th (local time) that it signed a multibillion-dollar contract with Corning to receive more than 80 million miles of high-density optical fiber and consolidation solutions from next year through 2032. The supplied optical fibers are expected to be used to expand ultra-high-speed networks for homes and corporations and to build long-distance networks connecting AI data centers.