Daehan Optical Communication is experiencing a decline of more than 7% during trading due to profit-taking sell-offs. However, the market continues to maintain expectations regarding the Lee Jae-myung administration's policy to expand artificial intelligence (AI) infrastructure and the medium- to long-term growth drivers of the optical communication industry.

As of mid-trading on the 6th, Daehan Optical Communication is trading at 11,330 won, down 910 won (7.43%) from the previous trading day. While the stock started the day on an upward note, rising to as high as 12,280 won during the session, selling pressure intensified and pushed it down to 11,050 won, reflecting widening volatility. Trading volume has already surpassed 5.2 million shares.

Investor attention is focused on the recently announced 'AI Mega Project' by the Lee Jae-myung administration. The government has designated semiconductors, physical AI, and AI data centers as the core pillars of building a national AI ecosystem. In particular, it identified the expansion of nationwide AI data centers and the construction of ultra-high-speed network infrastructure as key tasks, with a plan to attract large-scale private investment to incrementally expand related infrastructure.

As AI data centers expand, demand for optical cables and optical communication networks for ultra-high-speed data transmission between servers is expected to increase in tandem. Since high-capacity, ultra-low-latency optical communication technology is essential for both intra-data center connections and inter-center links, companies involved in optical fibers and optical cables are being cited as key beneficiaries of the policy.

Daehan Optical Communication, a leading company supplying optical fibers and optical cables not only to domestic communication networks but also to overseas markets, is also expected to benefit. Expectations that the expansion of AI data centers, cloud services, and 5G and 6G communication networks will drive optical communication demand over the medium to long term are sustaining interest in related stocks.

However, securities firms believe that expectations surrounding the policy alone will not immediately lead to improvements in corporate earnings. They advise that a comprehensive assessment is necessary, including the pace of AI data center investment execution, the scale of communication infrastructure orders, and the recovery of the global optical communication market. In the short term, there is also the possibility that stock price fluctuations will continue depending on supply and demand conditions and market volatility.

[This article was written with the assistance of AI. This article is not intended to solicit investment, and the final judgment and responsibility for investments lie with the investor.]