2 1 Shi Ji Jing Ji Bao Dao·2025-08-28 12:49Core Viewpoint - The stock of Yangtze Optical Fibre and Cable Joint Stock Limited Company (长飞光纤) has surged significantly following Nvidia's strong earnings report and the announcement of new Ethernet technology, indicating a positive market sentiment towards optical communication and related technologies [1][2]. Company Performance - On August 28, Yangtze Optical Fibre's A-shares opened with a 10% increase, reaching a closing price of 82.95 CNY per share, with a market capitalization exceeding 50 billion CNY, specifically 51.7 billion CNY [1]. - The company reported a 19.37% year-on-year increase in revenue for the first half of 2025, amounting to 6.384 billion CNY, while net profit attributable to shareholders decreased by 21.69% to 296 million CNY [2]. Market Dynamics - Nvidia's recent earnings report highlighted a 56% year-on-year revenue growth, with data center revenue also increasing by 56.4%, which has positively influenced the optical module and related hardware sectors [1]. - The new Spectrum-XGS Ethernet technology introduced by Nvidia is expected to drive demand for next-generation transmission technologies, such as hollow-core optical fibers, which offer low latency and high capacity [1][3]. Industry Outlook - The hollow-core optical fiber market is still in its early commercialization stages, with a competitive landscape likely dominated by established players like Corning, while new entrants may find opportunities in collaboration with major cloud service providers [3]. - The demand for high bandwidth and low latency connections in data centers is anticipated to grow, supporting the long-term trend of replacing copper with optical fibers [3].