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\n\t\t\t<\/a><\/p>\nAmid the ongoing artificial intelligence (AI) investment boom in global stock markets, the optical communication and telecommunications equipment sectors are drawing attention. In particular, the expansion of data centers and the construction of optical communication infrastructure are expected to benefit related domestic companies. However, experts point out that selective investment based on performance and competitiveness is necessary, rather than approaching the sector purely based on expectations, as was common in the past.<\/p>\n
Recently, shares of optical communication and telecommunications equipment companies on the Korean stock market have experienced sharp fluctuations. Stocks such as Inno Instrument, Kwangjeonja, Taihan Fiberoptics, Wooriro, and Bitkwajeonja surged as much as 1,000% in a short period before declining, creating a roller coaster market. Other telecommunications equipment stocks, including KMW, RFHIC, and Solid, have also seen their prices increase by two to three times compared to the beginning of the year.<\/p>\n
The catalyst for the surge in optical communication stocks was Jensen Huang, CEO of NVIDIA. On March 17, 2026 (local time), at NVIDIA’s AI conference “GTC 2026” held in the United States, CEO Jensen Huang publicly identified optical communication technology as a core element of next-generation AI computing infrastructure and announced large-scale investment plans.<\/p>\n
Unlike traditional copper wire-based communication, which uses electrical signals, optical communication is a technology that transmits data by sending light through glass fibers (optical fibers) that are thinner than a human hair. Because it uses light, transmission speeds are overwhelmingly fast, and the amount of data that can be transmitted at once is significantly greater than with copper wires.<\/p>\n
Inside AI data centers, thousands to tens of thousands of high-performance GPUs (graphics processing units) are densely connected. If data transmission slows between these devices, the overall performance of the AI system declines. Optical communication has been singled out as a solution to this bottleneck. In particular, as related technologies such as silicon photonics rapidly advance, previous drawbacks such as vulnerability to shocks and the high cost of optical transceivers are gradually being addressed.<\/p>\n
In reality, the global telecommunications equipment industry is showing distinct differences by segment. While wireless communication equipment is experiencing stagnant growth, demand for wired infrastructure and data centers\u2014centered around optical communication\u2014is increasing rapidly. U.S. telecom operator AT&T increased its capital expenditures (CAPEX) in the first quarter of this year by 13% year-on-year to 5.1 billion dollars, with most of the increase invested in wired infrastructure such as optical cables.<\/p>\n
Lee Chanyoung, a researcher at Eugene Investment & Securities, analyzed, “The increase in AI data centers has necessitated much higher optical fiber density than before, and currently, supply cannot keep up with the growth in demand. This has also led to rising unit prices for optical fibers.”<\/p>\n
This trend is also having a positive impact on domestic companies. It is being evaluated that Korea’s exports of optical cables and optical fibers to the United States have sharply increased, demonstrating the trickle-down effect of expanding global demand. The expansion of AI investment is leading to increased demand for telecommunications infrastructure, which is then translating into improved results for domestic equipment manufacturers.<\/p>\n
Another noteworthy point is the secondary demand that follows investments in optical infrastructure. Once optical cables are laid, there is subsequent demand for Wi-Fi equipment and devices needed to connect them to actual services. This indicates that benefits are spreading step by step even within the telecommunications equipment industry.<\/p>\n
Experts advise investing in companies that have business relationships with U.S. firms and are expected to generate actual results. Kim Hongsik, a researcher at Hana Securities, stated, “Interest in domestic optical communication companies is rising due to the surge in U.S. optical communication equipment makers like Lumentum and Coherent this year. However, at this point, a thorough selection process is necessary.”<\/p>\n
He explained, “If U.S. regulations on Chinese equipment and components are strengthened, U.S. companies are more likely to benefit, and companies that supply components to them are also likely to see advantages. Among domestic companies, it is necessary to focus portfolios on those that compete with or supply parts to U.S. firms.”<\/p>\n
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\n <\/a><\/p>\nHe added, “In the telecommunications equipment sector, KMW, RFHIC, Solid, LIG Acube\u2014a subsidiary of LIG Nex1\u2014and OE Solution are the most preferred stocks.”<\/p>\n
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This content was produced with the assistance of AI translation services. <\/p>\n
\u00a9 The Asia Business Daily(www.asiae.co.kr). All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"Expansion of Optical Cable Investments Driven by AI Data Centers Amid Bubble Concerns, True Beneficiaries Must Be Identified…\n","protected":false},"author":2,"featured_media":58561,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[149],"tags":[694,695,574,697,50,321,51,696,256,693],"class_list":{"0":"post-58560","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-jensen-huang","8":"tag-economic","9":"tag-issue","10":"tag-jensen-huang","11":"tag-korea","12":"tag-news","13":"tag-newspaper","14":"tag-politics","15":"tag-society","16":"tag-south-korea","17":"tag-the-asia-business-daily"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@people\/116524336059123443","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/58560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/comments?post=58560"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/58560\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media\/58561"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media?parent=58560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/categories?post=58560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/tags?post=58560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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