Will 2026 mark the supply and demand turning point? An overview of individual stocks in the optical fiber industry chain

The optical fiber concept showed strong performance on February 26, with Zhongtian Technology, Falson, Hengtong Optoelectronics, FiberHome Technologies, and Tongding Interconnection hitting the daily limit; Hangdian Shares, Tongguang Cable, Changyingtong, and Tianfu Communications also saw significant gains.

From a market perspective, the recent strength of the optical fiber sector is due to a shift in supply and demand within the industry. Huatai Securities states that on the demand side, the optical fiber industry is experiencing high growth driven by global AI data centers and drones (mainly military FPV drones requiring A2 optical fiber). On the supply side, the global capacity utilization of upstream key materials like optical fiber preform rods may have peaked, but the expansion cycle for these rods is relatively long (about 2 years), so industry capacity cannot be quickly increased in the short term.

According to estimates from China International Capital Corporation (CICC), the optical fiber industry will face continuous supply shortages in 2026-2027, with a demand gap of 10 million core kilometers in 2026, increasing to 30 million core kilometers in 2027.

Recently, the soaring prices of G.652.D single-mode optical fiber (the most widely used fiber domestically) also indirectly reflect the shift in supply and demand. Public information shows that in January 2026, the price of G.652.D single-mode fiber in China reached a new high in nearly seven years, averaging over 35 yuan per core kilometer.

It should be noted that this model (G.652.D) is mainly used in the telecommunications market, but it is widely believed that one reason for the price increase is that AI-driven demand for multimode fibers, G.657.A, G.654.E, and other models has squeezed capacity, leading to tighter supply of traditional products. This phenomenon is also occurring in the AI-driven storage market.

Currently, some stocks in the optical fiber industry chain are attracting market attention, such as Long Fiber Optic (which has surged 697.43% in A-shares and 1033.66% in Hong Kong stocks since 2025), Hengtong Optoelectronics, Zhongtian Technology; in fiber cable manufacturing, Tongding Interconnection and Hangdian Shares; and in passive/active devices, FiberHome Technologies and Tianfu Communications.

Looking ahead, CICC states that AI is reshaping the demand structure of the optical fiber market, and the supply-demand inflection point is expected to drive both volume and price increases. Huatai Securities emphasizes the importance of paying attention to the supply and demand reversal in the optical fiber and cable sector.

(Article source: Oriental Fortune Research Center)