On Friday, April 10th, optical module and CPO (co-packaged optics) stocks demonstrated significant strength, with the ChiNext Artificial Intelligence sector continuing its upward trajectory. Leading optical module manufacturers Eoptolink Technology and Zhongji Innolight both surged over 6%, reaching new record highs. Eoptolink's market capitalization surpassed 500 billion yuan, while Zhongji Innolight exceeded 800 billion yuan. Statistics indicate that over the past year, the three major optical module CPO players have experienced rapid growth, with an average increase surpassing 800%.
Regarding popular ETFs, the ChiNext Artificial Intelligence ETF HuaBao (159363), which holds significant positions in leading optical module companies, continued its strong performance. It closed up 2.09%, hitting a new all-time high, with a single-day turnover of 968 million yuan. Reviewing the week, fund 159363 accelerated its breakthrough, accumulating a weekly gain of 11.52% and marking five consecutive weeks of positive returns.
Analyzing market information, the strong performance of the leading optical module trio—Zhongji Innolight, Eoptolink Technology, and TFC Optical—alongside the consecutive breakthroughs in the ChiNext AI sector, is likely driven by a combination of three factors: explosive demand, tightening supply, and technological catalysts.
On the demand side, the explosion of AI applications and high capital expenditure from cloud providers are key drivers. For large models, video generation models like Happy Horse consume significantly more computing power than text models, directly fueling rigid demand for 800G/1.6T optical modules. Furthermore, with the Google conference approaching, market expectations are high for the release of a new generation TPU and progress on Optical Circuit Switches (OCS), indicating sustained high levels of capital expenditure. Financially, Zhongji Innolight and Eoptolink Technology have projected substantial net profit growth for 2025, with high industry prosperity already translating into substantial orders.
On the supply side, high-end products are entering a volume shipment phase, and production capacity barriers remain high. The year 2026 is seen as the inaugural year for the commercialization of 1.6T optical modules. Zhongji Innolight has secured an exclusive order from NVIDIA scheduled through 2027, while Eoptolink Technology has also commenced mass production of 1.6T modules. These higher-speed products significantly enhance gross profit margins. Concurrently, the complex manufacturing processes for silicon photonics modules and high barriers in coupling and packaging/testing limit expansion by new entrants, allowing leading manufacturers to benefit from supply-side rigidities.
On the technology front, Google's OCS and silicon photonics technology are opening new growth avenues. If the Google conference reveals practical applications for OCS optical circuit switches, it is expected to drive demand for optical switches and related optical modules. Additionally, TFC Optical has achieved mass production of 1.6T optical engines, positioning it advantageously for next-generation CPO packaging technology.
In summary, as AI transitions from training to multimodal applications, computing power demand is experiencing non-linear growth. The trio, serving as core suppliers for global computing infrastructure, enjoys strong industry momentum supported by both robust financial performance and solid order books. The underlying index of the ChiNext Artificial Intelligence ETF HuaBao (159363) and its feeder funds allocates approximately 70% to computing power and about 30% to AI applications, representing not just a core computing power investment but also a genuine stake in AI application development.
MACD golden cross signals have formed, indicating positive momentum for these stocks.
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