Optical communications-related stocks strengthen on news of Micron CapEx expansion

(Seoul = Yonhap News) Reporter Kim Yu-hyang = Domestic optical communication-related stocks are showing strong performance in the early trading on the 2nd.

As of 9:23 am on this day in the KOSDAQ market, Korea Optical Communication [010170] is trading at 18,000 won, up 5.26% from the previous day.

The stock price, which started up 2.81%, rose to 18,280 won (+6.90%) at one point in early trading.

Mercury [100590] entered the upper limit (29.80%), Oi Solution [138080] (10.94%), Woori Net [115440] (6.44%), Solid [050890] (6.10%), Lycom [388790] (4.57%), Other optical communication-related stocks such as RFHIC[218410] (4.17%) are also rising.

In the New York stock market last night, optical communication stocks such as Coherent (10.90%), Siena (7.77%), and Lumentum (7.67%) showed strength due to the news of Micron's expansion of facility investment (CapEx). It is interpreted that this reflects expectations that demand for optical connection components such as high-speed optical modules and lasers will increase due to the expansion of AI data centers.

Seo Sang-young, managing director of Mirae Asset Securities, analyzed, "Micron's expansion of capital expenditure led to the solid trend of the semiconductor equipment, optical communication, and energy industries in the U.S. stock market."

Dong-chan Yeom, a researcher at Korea Investment & Securities, said, "With the U.S. Congress proposing a bill banning the use of Chinese optical transceivers in federal government sensitive systems, and the possibility of additional regulations on next-generation products being discussed, expectations for optical communication component companies for AI data centers have increased."