en.Wedoany.com Report on Mar 30th, The latest research report released by CITIC Securities points out that China's optical fiber exports have recently shown a significant trend of "rising both in volume and price," and the proportion of exports to domestic production is already at a high level. Data shows that in February of this year, China's monthly optical fiber exports reached 3779.9 tons, corresponding to a value of approximately 7.9 billion yuan, representing year-on-year increases of 63.6% and 126.8%, respectively. Converting the export quantity into the commonly used length unit for optical fiber, the February export volume is equivalent to about 25.2 million core-kilometers, which already accounts for about 65% of China's effective optical fiber production for that month. The report further indicates that if the optical fiber contained in exports in the form of optical cables is included, the actual proportion of optical fiber exports would be even higher. This data clearly shows that overseas markets are actively purchasing optical fiber products made in China, placing major domestic optical fiber suppliers in a favorable market position of "having no trouble selling."

Based on the analysis of industry data, CITIC Securities believes that the market does not need to overly focus on or be concerned about the procurement scale and prices of optical fibers and cables by domestic telecom operators. The core driver of the current industry's high prosperity comes from strong overseas demand. The report analyzes that this demand growth is the result of multiple factors resonating: first, the continuous construction and upgrading of telecom fixed broadband networks worldwide; second, the massive demand for high-speed optical transmission from artificial intelligence infrastructure, especially within and between large data centers (DCI); third, the new incremental demand brought by emerging application scenarios such as drones and the Internet of Things. These demands collectively drive the rapid growth in demand for optical fiber and cable products and push product prices to continue rising. The industry as a whole is in a high prosperity cycle, therefore the report continues to recommend the optical fiber and cable sector.

At the same time, the report also mentions the latest technological advancements in the 5G network industry chain. Google's newly released TurboQuant compression algorithm achieves "near-lossless" compression of the memory required for artificial intelligence model inference. This technological breakthrough is expected to significantly reduce inference costs when handling long-context tasks. The reduction in costs will directly benefit the deployment and popularization of edge-side AI applications and promote the development of applications with high demands on computing power and memory, such as AI video generation. Based on the high prosperity of hardware infrastructure like optical fiber and the continuous progress of AI algorithms and applications, CITIC Securities reiterates in the report its continued optimism about the investment opportunities across the entire artificial intelligence industry chain.