The AI boom triggers a “fiber optic shortage”! Supply constraints may continue until 2028, with Corning, Verizon, and Coherent attracting market attention

According to reports from Zhihui Finance APP, Corning Inc. (GLW.US) and Verizon Communications Inc. (VZ.US) saw their stock prices attract market attention on Monday. Previously, research firm TrendForce predicted that rising artificial intelligence infrastructure demand will lead to a supply gap of 180 million fiber-kilometers in the global optical fiber market by 2026.

The firm expects the supply shortage to last at least until 2028. Additionally, TrendForce projects that the spot price for finished optical fiber products in 2026 will reach between 2.8 and more than 5 times the 2025 level, depending on the fiber type.

Other fiber optics-related stocks are also drawing attention, including Coherent (COHR.US), Ciena (CIEN.US), and Amphenol (APH.US), all of which are involved in fiber connectivity, optical components, and high-capacity network infrastructure businesses.

AI fiber demand to outpace supply

TrendForce states that global optical fiber demand is expected to reach 577 million fiber-kilometers this year, with data centers accounting for about 18% to 20% of consumption. This share is expected to rise to 30% to 35% by 2027.

TrendForce notes that since late 2025, demand from AI data centers has tightened global supply, with chip manufacturers and telecom operators joining hyperscale cloud service providers in investing in related infrastructure.

The firm points out that, unlike previous telecom infrastructure cycles, the current shortage reflects sustained incremental demand from AI data centers, which is driving needs for interconnect and high-capacity backbone networks.

Global optical fiber capacity utilization has reached 92%, while inventory has dropped from four months in 2024 to just one month. Some leading suppliers have order bookings into the first quarter of 2027, and expanding preform manufacturing capacity typically requires 18 to 24 months.

The price impact varies by application. Bend-insensitive fiber used inside data centers is expected to see average prices rise to more than five times 2025 levels, while backbone AI fiber prices are projected to reach about 2.8 times 2025 levels. Mainstream telecom fiber quotes may climb to around 3.7 times previous levels.

Corning and Verizon secure long-term fiber supply

TrendForce reports that telecom operators have shifted from short-term procurement to long-term supply agreements to lock in their future fiber needs.

The firm specifically highlighted an agreement reached in September between Corning and Verizon, covering about 129 million fiber-kilometers (or 80 million fiber miles) of high-density fiber and connectivity solutions.

Corning also signed another agreement in September worth more than $3 billion with AT&T (T.US) to supply fiber and optical cables for its U.S. network expansion.

TrendForce expects that as AI-related demand continues to grow and manufacturers face lengthy capacity expansion cycles, such agreements will become increasingly common.