GLW, VZ, COHR In Focus As AI Fiber Shortage Drives Prices Higher — TrendForce Sees Supply Crunch Through 2028

Global optical fiber demand is projected to reach 577 million fiber-kilometers in 2026, with data centers accounting for a growing share.

• TrendForce forecasts a global optical fiber supply shortfall of 180 million fiber-kilometers in 2026.
• Spot prices for bend-insensitive fiber used inside data centers are projected to average more than five times their 2025 levels.
• Expanding optical fiber preform capacity typically takes 18 to 24 months, limiting how quickly manufacturers can respond.

Shares of Corning Inc. (GLW) and Verizon Communications Inc. (VZ) are in focus after research firm TrendForce forecast on Monday that rising artificial intelligence (AI) infrastructure demand would leave the global optical fiber market facing a supply shortfall of 180 million fiber-kilometers in 2026.

The firm expects shortages to persist until at least 2028. Separately, it projects spot prices for finished optical fiber products to reach 2.8 to more than five times their 2025 levels in 2026, depending on the fiber type.

Other fiber-related stocks also came into focus, including Coherent (COHR), Ciena (CIEN), and Amphenol (APH), given their exposure to fiber-optic connectivity, optical components and high-capacity networking infrastructure.

AI Fiber Demand To Outpace Supply

According to TrendForce, global optical fiber demand is expected to reach 577 million fiber-kilometers this year, with data centers accounting for roughly 18% to 20% of consumption. That share is projected to climb to 30% to 35% in 2027.

TrendForce said AI data-center demand has tightened global supply since late 2025, with chipmakers and telecom operators joining hyperscale cloud providers in investing in related infrastructure.

Unlike previous telecom infrastructure cycles, the firm said the current shortage reflects sustained additional demand from AI data centers, driving the need for interconnects and high-capacity backbone networks.

Global optical fiber capacity utilization has climbed to 92%, while inventories have fallen from four months in 2024 to just one month. Some leading suppliers are already booked into the first quarter of 2027, while expanding preform capacity typically takes 18 to 24 months.

The pricing impact varies by application. Bend-insensitive fiber used inside data centers is projected to average more than five times its 2025 price, while AI backbone fiber prices are expected to reach approximately 2.8 times their 2025 levels. Mainstream telecom fiber quotations could rise to around 3.7 times their previous levels.

Corning, Verizon Lock In Long-Term Fiber Supply

TrendForce said telecom operators are already shifting from short-term purchases to long-term supply agreements to secure future fiber requirements.

The firm highlighted a September agreement between Corning and Verizon covering approximately 129 million fiber kilometers, or 80 million fiber miles, of high-density optical fiber and connectivity solutions.

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

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

See Also: META Stock Gets A Price Target Hike From Morgan Stanley – But Firm Flags Daily Active User Growth For Muse

For updates and corrections, email newsroom[at]stocktwits[dot]com<