On March 10, market indices staged a robust rebound, with the computing power sector leading gains. Co-packaged optics (CPO), printed circuit boards (PCB), and optical communication stocks surged significantly. The CPO sub-sector led the rally with over 5% gains, while stocks including Xunjiexing, Changguang Huaxin, Fenghuo Communication, and Changfei Guangxian saw multiple limit-up closures. Over a longer period, many CPO-related stocks have delivered multi-fold returns, with some even achieving tenfold increases.
The computing power sector has reclaimed center stage, with stocks like Xunjiexing sparking a wave of limit-up gains. Following a recent correction, major indices opened sharply higher on March 10, with the ChiNext Index closing up more than 3%. The market’s performance on March 9 had already set the stage for this rebound, as major indices and tech sectors completed intraday V-shaped reversals.
Market analysis suggests that the rebound in CPO and PCB—key drivers of AI computing hardware advancement—was fueled by technical oversold conditions, heavy capital participation, and industry catalysts. From an oversold perspective, the CPO sector had fallen over 6% intraday on March 9, attracting bargain-hunting interest. Within the sector, stock performances varied: some, like Xunjiexing and Youxun Co., started rallies from mid-to-low levels, while others such as Huilv Shengtai, Yuanjie Technology, Changguang Huaxin, and Kexiang Co. extended long-term uptrends, with several hitting new highs on March 10. Notably, Huilv Shengtai rose tenfold since its low in mid-April 2024.
Beyond technical factors, heavy capital allocation has been key to the computing power sector’s repeated rotations. Recent data show CPO trading volume exceeding 300 billion yuan on multiple days, accounting for a significant portion of total A-share turnover.
The computing power sector is supported by multiple catalysts including policy tailwinds, industry trends, and earnings delivery. Recent positive developments include policy support for AI and new productive forces during the Two Sessions, rising demand for inference computing power driven by AI advancements, and a major order for 1.6T optical transceivers received by U.S. firm AOI. Additionally, NVIDIA’s GTC 2026 conference, scheduled for March 16–19, is expected to catalyze further momentum in AI computing.
Upcoming earnings reports also serve as a key driver. Dingtai High-Tech, for example, projected 2025 net profit growth of 80.72% to 102.76%, attributed to strong demand for high-end PCBs. The company, a global leader in PCB tools, is expanding production capacity to meet growing orders. Its shares have trended higher and recently accelerated to new peaks.
Other companies have also disclosed expansions in PCB-related operations. Kexiang Co. announced small-batch supply of 800G optical module PCBs and server-use PCBs, while Dongshan Precision reiterated its focus on high-end AI PCBs and plans to boost capacity. Both stocks performed strongly on March 10, with Kexiang surging over 13% to a multi-year high and Dongshan Precision hitting a limit-up to reach a record high.
Additional firms have revealed plans involving PCB capacity expansion, supply chain enhancements, and market development, underscoring broad-based growth momentum in the sector.
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