Sterlite Tech, HFCL, Vindhya Telelinks and Birla Cable plunge as global AI stocks rout deepens; What lies ahead for optical fibre companies?

AI stocks rattled global markets on Thursday as investors turned cautious over the AI theme buildout. After Democrats won both houses of Congress in the US mid-term elections, apprehensions grew over the AI capex spree, as reports suggest the Democrats would slow down the AI capex spree and scrutinise existing investments.

Consequently, the tech-heavy NASDAQ 100 index witnessed a steep fall of 6.3% on Thursday. Similarly, the Philadelphia Semiconductor index, a known benchmark for chip stocks, plunged 12% on Thursday, underscoring the gravity of the plunge in AI stocks.

Owing to the rout in the US AI stocks, the Indian optical fibre companies will also remain in focus during Friday’s session. Optical fibre companies turned out to be the major beneficiaries of the AI-led global rally amid a massive surge in order book and profits. Here is how optical fibre stocks are faring after the AI stock rout intensifies.

Sterlite Technologies

Shares of India’s leading optical fibre player Sterlite Technologies hit the lower circuit level of ₹719 per share on the NSE on Friday. The shares have already plunged over 31% from the record high levels touched on October 6, 2026. However, despite the fall, the shares are still up 600% in 2026 on a YTD basis. A large part of this rally is driven by robust order inflow during the year, led by global AI hyperscalers. The company’s total order intake surged 4.2x in H1 FY27 to ₹32,026 crore as compared to ₹7,687 crore in the entire FY26. In Q2FY27, the company’s revenue soared 145% YoY to ₹2,529 crore, and the EBITDA jumped 500% YoY to ₹846 crore.

HFCL

Shares of HFCL Ltd (Himachal Futuristic Communications Ltd) also plunged to 5% lower circuit level on Friday at ₹210 apiece on the NSE as the AI stock rout deepened. Shares now trade 25.3% lower from the record highs touched last month. Despite the fall, the shares are up 209% in 2026 on a YTD basis. The shares earlier soared 309% in 2026 to record highs, led by robust order intake from the global hyperscalers for optical fibres. In Q2FY27, the company’s revenue surged over 250% YoY to ₹2,542 crore; EBITDA grew multifold from ₹203 crore to ₹658 crore, and profitability also grew multifold from ₹72 crore to ₹394 crore.

A large part of this growth is attributable to a robust order book of ₹28,911 crore, up from ₹9,981 crore in the same period last year.

Vindhya Telelinks

Vindhya Telelinks shares plunged 5.5% on Friday morning, amid broader selloff in optical fibre stocks. The shares have delivered robust returns in 2026 on a YTD basis at 75% and surged 110% to their peak. The rally was largely driven by robust financials, led by broader optimism in the sector. In Q2 of FY27, the company’s net profit grew 82% YoY driven by global expansion of Artificial Intelligence and hyperscale data centres.

Birla Cables

Shares of Birla Cables opened in the green after announcing its quarterly earnings report, which showed a substantial surge in net profit. However, broader pessimism around optical fibre companies pulled the stock down near flat lines on Friday. Birla Cables too has benefited from the AI-led rally in the optical fibre stocks, as its shares rallied over 153% in 2026 on a YTD basis, after plunging 18% from record-high levels.

What lies ahead of optical fibre companies?

Most of the optical fibre companies have corrected 25-30% from their record-high levels in the last month amid profit booking after a euphoric rally witnessed this year. As sentiment sours for global AI stocks, amid indications of a slowdown in spending on AI and data centre buildout capacity. At the fundamental level, Indian optical fibre makers have secured a multi-year order book, and the pipeline remains strong as computing demand remains robust. However, share prices have already discounted this growth in the current rally driven by the global rally in AI and related stocks. Whether this dip in optical fibre shares gets bought or extends further needs to be closely monitored.