An Update on TMC + Nvidia's Transitioning from Copper to Optical Fiber for AI Data Center Infra
Nvidia’s transitioning from copper to optical fiber for AI data center infrastructure is likely to benefit key Korean companies including TMC (217590 KS).
What may be a better value could be KPF which has a 48.8% stake in TMC. KPF’s market cap is 30% of its stake in KPF.
Optical fibers transmit data at two-thirds the speed of light. Power consumption is 5 to 20 times lower than that of copper.
Source: TMC
In this insight, I provide an update on TMC (217590 KS) which completed its IPO in December 2025. Plus, I share my thoughts on NVIDIA Corp (NVDA US)‘s transitioning from copper to optical fiber for AI data center infrastructure. This trend has been positively impacting many Korean companies including TMC (217590 KS) whose share price has risen 239% since its IPO on 15 December 2025. For further details on this company, see my insight TMC IPO Preview.
Conclusion First
Nvidia’s transitioning from copper to optical fiber for AI data center infrastructure is likely to benefit key Korean companies including TMC (217590 KS). Although TMC’s valuation multiples have risen in the past five months (since its IPO in December 2025), its supplier relationship to Corning is likely to be viewed very favorably by many investors. Therefore, TMC’s valuations could continue to remain high this year. I remain positive on TMC.
Meanwhile, what may be a better value could be Kpf (024880 KS) which is the largest shareholder of TMC with a 48.8% stake. KPF currently has a market cap of 113 billion won. KPF’s 48.8% stake in TMC is now worth 371 billion won. One could argue that KPF is significantly undervalued (market cap is 30% of its stake in KPF).
Potential Inclusion in KOSDAQ150 index - Furthermore, TMC currently has a market cap of 759 billion won. There are currently 41 companies in KOSDAQ150 index with lower market cap than TMC. Therefore, one could argue that TMC could potentially be included in the KOSDAQ150 index in 4Q 2026/2027. Potential inclusion candidates in KOSDAQ150 index sometimes have wild price swings.
