CITIC Securities: China's optical fiber export ratio has significantly increased, continuing to favor the AI computing power sector

Mars Finance news, March 30 - According to a research report by CITIC Construction Investment, in February this year, China exported 3,779.9 tons of optical fibers, amounting to 790 million yuan, a year-on-year increase of 63.6% and 126.8%. If converted to kilometers, China exported approximately 25.2 million core kilometers of optical fibers in February, accounting for about 65% of the country’s monthly effective production of optical fibers. Including the optical fibers in the cable exports, the proportion of optical fiber exports is even higher. Based on the export amount, it is expected that the transmission of price increases in optical fibers will not be very apparent in the first quarter. In summary, overseas markets are actively purchasing optical fibers produced in China, and Chinese optical fiber suppliers are in a “not worried about sales” situation. Therefore, we believe that the market does not need to be overly concerned about the optical fiber centralized procurement by domestic telecom operators. Overall, the demand for optical fibers is being significantly driven by overseas telecom networks, AI, drones, and other factors, pushing prices to continue rising, and the industry is in a high prosperity cycle, continuously recommending the optical fiber sector. Google’s TurboQuant compression algorithm achieves near-lossless compression of AI inference memory, significantly reducing the cost of long-context inference, with applications like edge AI and AI video generation expected to benefit, continuing to remain optimistic about the AI industry chain. (Wide Angle Observation)