CITIC Securities: AI + drones driving the optical fiber industry chain, materials end expected to benefit from both increased quantity and price trends.

CITIC Securities Research Report states that the training of AI large models is driving the data center network architecture from traditional three-layer convergence to fully interconnected leaf-spine architecture, with data traffic shifting from north-south access to east-west interconnection within GPU clusters. In order to meet the communication needs of non-blocking and low latency, the consumption of optical fibers for single-machine architecture or single GPU is rapidly increasing. In addition, the rapid expansion of drones has also made optical fibers consumables. Driven by the demand for AI + drones, upstream optical fiber materials such as silicon tetrachloride, organic silicon D4, optical fiber coating, para-aramid and other products are expected to usher in a trend of simultaneous increase in quantity and price.