AI Data-Center Demand Fuels Strong Gains in Optical Communications and Chemical Stocks
As AI models grow in scale, data-center bottlenecks are spreading beyond GPUs to high-speed transmission, heat-resistant materials and cooling capacity, making optical fiber, polymers, adhesives and liquid-cooling technology critical. Meta Platforms signed a multiyear supply agreement worth up to $6 billion with Corning on January 27, 2026, underscoring how AI infrastructure spending is spilling over into the materials supply chain.
On February 25, 2026, Corning and AXT gained 5.83% and 16.79%, respectively, in a single session, while Shin-Etsu Chemical was up more than 22% year to date. As of March 13, LSEG data citing Johnson Matthey prices put ruthenium at $1,750 an ounce, more than three times its lows of $500–$600 a year earlier. Metals Focus estimated a supply deficit of 203,000 ounces in 2026.
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The history behind this eventAI Data Centers Lift Optical Communications Demand, Driving Taiwan Stocks Higher
Global cloud service providers continue to expand AI data centers, boosting demand for high-speed server connectivity and accelerating the adoption of silicon photonics, optical transceiver modules and related packaging technologies. Taiwan’s supply chain includes LandMark Optoelectronics, Browave and ShunSin-KY. Their ability to secure data-center upgrade orders has become an important gauge of the spillover benefits from AI infrastructure capital spending.
Taiwan stocks surged by nearly 1,500 points in the latest rally as funds poured into optical communications shares. Browave and ShunSin-KY hit their daily limits, while LandMark Optoelectronics also advanced. Revenue at several companies reached record highs, indicating that demand from CSP capacity expansion is beginning to feed through to the supply chain. However, the available information does not specify the trading date, monthly revenue figures or gains for individual companies, leaving those numbers subject to confirmation in company announcements.
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