Nvidia Partners with Corning to Use Optical Fibre in Next-Generation AI Rack Systems

Nvidia has deepened its partnership with Corning to replace copper links with optical fibre in next-generation rack-scale artificial intelligence systems. The Nvidia-Corning deal was announced on Wednesday. The announcement has drawn attention to mainland China’s optical communications supply chain, which South China Morning Post reported has emerged as the global bedrock for high-capacity components required to power AI infrastructure.

The domestic optical value chain is also doubling down on AI scenarios. “The global optical fibre and cable market had entered a period of both rising volumes and prices since the fourth quarter of 2025,” said Wang Xing, analyst at Huatai Securities. He added that China remained at the centre of global supply with its closed-loop industrial chain and scale-driven cost advantages.

In 2025, China accounted for 59 per cent of global optical preform output, 57 per cent of optical fibre production and 47 per cent of optical cable output. Huatai Securities data showed China was the world’s largest supplier across the optical preform, fibre, and cable chain in 2025.

Riding the trend, shares of Yangtze Optical Fibre and Cable Joint Stock have jumped more than 200 per cent year to date since late 2025.

Shares of Hengtong Optic-Electric and Tongding Interconnection Information have also jumped more than 200 per cent year to date since late 2025. China’s optical fibre index, encompassing dozens of optical fibre and cable suppliers, has risen more than 100 per cent year to date, according to financial information provider DZH.

The index climbed more than 8 per cent this week following the Nvidia-Corning deal.