NVIDIA Moves into Dark Fiber, Boosting Resilient Rally in Optical Communication Stocks

Taiwan's stock market opened lower today (27th) and plunged over 600 points at one point during the session. However, market speculation that NVIDIA (NVDA-US) is planning a large-scale acquisition of U.S. 'dark fiber' infrastructure has sparked investor enthusiasm. The move is believed to help NVIDIA secure physical fiber networks to address optical communication transmission bottlenecks. Combined with this week’s U.S. tech earnings season, where major companies will provide further outlooks on the AI industry, optical communication stocks attracted strong capital inflows and demonstrated resilience.

Several optical communication stocks rose sharply during trading. Eastone Optoelectronics (6588-TW) surged to its daily limit, while Walsin Opto (4979-TW), Po-Loi (3163-TW), IET-KY (4971-TW), Lianyeh (3081-TW), and Universal Scientific Industrial (USI)-KY (4991-TW) all gained over half of their daily trading limit at one point.

In addition to these standout performers, Tongsin and Forward Technology also rose 3–4% during the session.

Eastone Optoelectronics benefited from sustained market interest in AI and 5G-related optical communication themes. Today’s surge came on the back of June revenue reaching NT$333.8 million, up nearly 50% year-on-year. The company’s exposure to the low Earth orbit (LEO) satellite theme further boosted investor attention, with trading volume more than tripling compared to the previous session.

Walsin Opto reported record-high June revenue, and market expectations are rising for volume shipments of its 800G ZR and high-speed products in the second half of the year, reflected in five consecutive green daily candles on its chart. Po-Loi has gained attention due to its role in high-speed optical communication and CPO (co-packaged optics, silicon photonics) supply chains, and as a key supplier to NVIDIA, it remains in the market spotlight.

Analysts note that after reaching peak levels in April, optical communication stocks have undergone significant corrections, with many falling below their 200-day moving averages. However, recent rebounds have been strong, and with institutional investors continuing to accumulate positions, investors may consider gradually building positions in fundamentally sound companies once share prices stabilize above their monthly moving averages.