Telecom-related stocks rose sharply in early trading on October 2, driven by a surge in demand for high-capacity data transmission due to the expansion of artificial intelligence (AI) data centers.
According to the Korea Exchange, as of 10:50 a.m., Bitsem Electronics was trading at 17,650 won, up 2,360 won (15.43%) from the previous day, while Dukwoo Electronics rose 840 won (19.05%) to 5,250 won. Seongho Electronics increased by 3,100 won (10.88%) to 31,600 won.
The rise in telecom stocks is attributed to the growing need for high-speed transmission networks and the enhancement of optical communication infrastructure, driven by the increase in AI data center expansion and high-volume traffic. Analysts suggest that the need for investment in communication equipment to improve transmission speeds and alleviate bottlenecks has become more pronounced during the transition to cloud and next-generation networks.
Earlier, telecom companies showed strong performance on the New York Stock Exchange, with Micron's positive earnings further fueling expectations for investment in AI infrastructure.
AI data centers require the rapid exchange of large volumes of data by connecting numerous graphics processing units (GPUs), highlighting the importance of optical communication technology for high-speed data transmission. Consequently, buying interest has spread across the entire value chain, from fiber optics and optical cables to optical transceivers and semiconductor components for optical communication.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.