Changes in Hong Kong stocks | Optical communication concept stocks fell sharply across the board, Cambridge Technology (06166) fell nearly 20%, Changfei Optical Fiber Cable (06869) fell more than 15%

The Zhitong Finance App learned that optical communication concept stocks fell sharply across the board. As of press release, Cambridge Technology (06166) fell 19.15% to HK$72; Changfei Optical Fiber Cable (06869) fell 15.19% to HK$106.6; Huiju Technology (01729) fell 14.4% to HK$12.9; Junzhi Group (01300) fell 11.94% to HK$1.18.

According to the news, the gap between fiber supply and demand is driving many companies to launch plans to expand production of optical rods and optical fibers. On the evening of July 10, both Fenghuo Communications and Lingyi Intelligent Manufacturing issued announcements. Nomura previously suggested that if new entrants can successfully develop high-end products (that is, air core fiber and multi-core optical fiber) and successfully implement capacity expansion plans, market competition will intensify, and existing participants may face pressure to expand profit margins.

Notably, Nvidia's latest $750 billion AI infrastructure deal has raised concerns about “revolving financing.” Analysts pointed out that in the past, major cloud vendors and Nvidia used their own capital to invest in model developers and chip companies, and the recipient then used this money to buy the investors' own products, thus creating the appearance of strong demand and high revenue growth. If these investors run out of free cash flow, they will have to rely on external financing to maintain such circular transactions. According to reports, in June of this year, Nvidia announced that it would raise 20 billion US dollars by issuing bonds, the first time in five years.