Changes in Hong Kong stocks | Optical Communications concept stocks have the highest declines, and the market continues to pay attention to AI capital expenditure prospects, institutions indicate performance or catalytic valuation restoration

The Zhitong Finance App learned that optical communication concept stocks had the highest decline. As of press release, Junzhi Group (01300) fell 10.13% to HK$2.085; Cambridge Technology (06166) fell 7.95% to HK$68.3; Changfei Optical Fiber Cable (06869) fell 6.60% to HK$104.8; Zhongji Xuchuang (03308) fell 5.37% to HK$714.

According to the news, Nomura's latest report indicates that AI capital expenditure is in a dilemma. If capital expenditure of hyperscale manufacturers continues to accelerate, the market will focus heavily on the continued consumption of free cash flow and further question the sustainability of overall financing; if capital expenditure of hyperscale manufacturers decelerates substantially, AI transactions will face an even more severe impact.

Huatai Securities believes that sector fluctuations in recent weeks have been more disrupted by transactions and sentiment, and computing power expansion and interconnection upgrades still support industrial demand. Optical modules benefit from port rate upgrades and cluster scale expansion. Demand for optical fibers grows as scale-up and scale-out connections increase, and continued investment is expected to support the fulfillment of industrial chain orders and performance. The optical module and optical fiber sector has gone through a round of refinement, and performance is about to be catalyzed. It is recommended to focus on valuation repair opportunities for leading companies.