Against the backdrop of rapid technological advancement, shares linked to high-speed copper cable connectors have staged a strong rally. On December 23, according to a report by Sci-Tech Innovation Board Daily, Yidong Electronics hit the daily upper trading limit, while DingTong Technology had reached limit-up in the previous session. Related companies including Hufeng Technology and Zhaolong Interconnect also moved sharply higher.
The stock movements reflect a convergence of structural drivers within the AI and data center supply chain.
Market Fundamentals: High-Speed Copper Connectors
High-speed copper cable connectors are primarily used for short-distance interconnections within data centers—between servers and switches, storage devices and switches, and switch-to-switch links. As artificial intelligence (AI) computing clusters continue to scale up, data centers are seeing sustained growth in demand for copper-based interconnect solutions, providing strong support for sector valuations.
According to LightCounting, demand for multiple products—including optical modules—currently exceeds supply by more than twofold. Market momentum over the coming year will largely depend on suppliers’ capacity expansion capabilities.
Huaxin Securities forecasts that from 2023 to 2027, high-speed copper cables will achieve a compound annual growth rate (CAGR) of approximately 25%, with shipments expected to exceed 20 million units by 2027. A research note from Minsheng Securities highlights continued increases in capital expenditure by large North American enterprises in 2025, driven by rising demand for AI servers in data centers. Next-generation large-scale AI server architectures—represented by NVIDIA’s GB200 platform—have already entered mass deployment, further driving demand for high-speed copper interconnects and backplane connectors.
Supply Chain Players Signal Optimism
With demand for high-speed copper connectivity products accelerating, companies across China’s A-share copper connector supply chain have expressed broad optimism regarding shipment volumes next year.
DingTong Technology, which focuses on the R&D, production, and sales of high-speed communication and automotive connectors, offers products including high-speed backplane connector assemblies, I/O connectors, high-speed copper cable connectors, heat sinks, and liquid-cooling cold plates. According to the company’s official Weibo post on November 21, 2025, its 224G liquid-cooling technology has passed NVIDIA certification and is expected to enter mass delivery shortly.
Company representatives confirmed this in an interview on December 23, noting that DingTong’s core customers include Amphenol and Molex. Supplies to NVIDIA are delivered indirectly through these customers, positioning the firm as a second-tier supplier. While the new product carries a higher value per unit, shipment timing will depend on customer schedules. Currently, the company’s flagship product remains the 112G series, which began scaling up shipments in the third quarter of last year, achieving both year-on-year and quarter-on-quarter growth. Monthly shipments surpassed one million units in the second quarter of this year.
Management added that communication connectors typically account for around 70% of total revenue, serving as the primary earnings driver, while automotive-related products play a supplementary role. The company expects 2025 profit growth to align with previous guidance, with full-year revenue estimated at approximately RMB 1.6 billion. Outlook for next year remains positive, with 224G products expected to ramp up gradually.
Zhaolong Interconnect, another key industry participant, specializes in the design, manufacturing, and sales of data cables, specialty cables, and connectivity products. According to the company’s investor relations team, its product portfolio spans single-lane 112G as well as 200G, 400G, and 800G specifications. The current volume driver is its single-lane 112G products, which are already in mass production and primarily deployed in AI-related data centers.
The company reported strong earnings growth in the first three quarters, with profits rising sharply year on year. Revenue from high-speed connector products grew by more than 50%. Fourth-quarter orders remain fully booked, and capacity is being expanded steadily. Based on current orders and customer outlook, management expects demand for high-speed products to remain robust next year, offering substantial revenue growth potential.
Regarding copper price volatility, Zhaolong noted that its data cable business adopts a daily pricing model based on “copper price plus processing margin,” allowing raw material costs to be passed through efficiently. For high-speed connectors and industrial products, copper content accounts for a relatively small proportion of total costs, with technological value playing a more decisive role in profitability. As a result, these products are less sensitive to copper price fluctuations.
To meet growing demand, Zhaolong recently completed a private placement, with proceeds earmarked for expanding capacity in high-speed cables and connectivity products.
As an upstream supplier, SIERI New Materials provides high-strength, high-conductivity copper alloy materials mainly to strip manufacturers and copper connector producers. In response to investor inquiries, the company stated that its copper connector consumables business remains stable, forming its core revenue base. Production and deliveries are order-driven, with capacity utilization consistently maintained at 80–90%. The segment continues to deliver steady growth.
Conclusion
Overall, as AI computing power continues to scale and data center construction accelerates, demand for high-speed copper cable connectors is set to expand further, supporting earnings growth across the supply chain. Future market performance will depend on capacity expansion and downstream customer demand. Against this backdrop, investors are closely monitoring developments across the sector to capture emerging opportunities.
Source：SOHU