On the afternoon of April 22, shares of Eoptolink Technology Inc.,Ltd., a leading optical module manufacturer, rose over 4%, once again reaching a record high and pushing the company's total market capitalization above 600 billion yuan. Since the beginning of this year, the stock has accumulated a gain of nearly 40%, and since April 21 last year, its cumulative increase has exceeded 890%.
Among popular ETFs, the Huabao ChiNext Artificial Intelligence ETF (159363), which holds significant positions in leading optical module stocks, surged over 4% in the afternoon to hit a new high, with explosive trading volume exceeding 1 billion yuan.
The stock performance of Eoptolink Technology is closely tied to the robust growth of the entire optical module industry, particularly against the backdrop of exploding demand for AI computing power, where high-speed optical module products have become a market focus. The company has launched 1.6T optical module products, covering all technical routes including VCSEL/EML, silicon photonics, and thin-film lithium niobate, with volume production expected to formally begin in 2026 to meet downstream customer demand. Furthermore, the company has also ventured into areas such as high-speed AEC cable modules, high-speed LPO optical modules, and CPO products. These initiatives help it maintain its leading position in the industry competition. The substantial stock price increase also reflects market optimism regarding the AI computing power industry chain. Lightcounting predicts that the global market size for data communication optical modules could reach $22.8 billion by 2026, with 800G and 1.6T optical modules expected to see rapid volume growth. Eoptolink's market capitalization breaking through 600 billion yuan highlights its leading advantage in the optical module sector and its future growth potential.
Eoptolink Technology's share price reaching a historic high and its market cap surpassing 600 billion yuan, with a cumulative surge of over 890% since last April and a nearly 40% increase year-to-date, reflects the high prosperity of the optical module industry driven by AI computing power demand. Benefiting from strong demand for high-speed optical modules from AI infrastructure construction, Chinese optical module companies are continuously enhancing their global influence. As one of the industry leaders, Eoptolink possesses leading technology and manufacturing capabilities, steadily expanding its market share. Recent strategic investments by NVIDIA in optical communication companies have further anchored the medium-term certainty of demand for optical modules. Capacity deployments by domestic manufacturers in Southeast Asia and the United States have strengthened actual delivery capabilities. Compared horizontally to the consumer electronics and new energy sectors, the optical module industry combines explosive growth potential with sustainability, and leading companies' valuations still have room for improvement.
As a leading enterprise in the optical module field, Eoptolink benefits from the explosive growth in AI computing power demand and the industry trend of global cloud providers increasing capital expenditures. Its stock price continues to hit new highs, with its market cap exceeding 600 billion yuan, accumulating a nearly 40% gain year-to-date and an increase of over 890% since last April. The company has launched 1.6T optical module products covering multiple technical routes, expected to enter volume production in 2026, and has strategically positioned itself in high-speed AEC cable modules, LPO optical modules, and CPO, demonstrating significant technological advantages and steadily expanding overseas market share. Research reports indicate that leading optical module companies still have substantial room for valuation uplift, with actual performance P/E ratios generally lower than consensus expectations and potential for upward movement compared to historical highs. Lightcounting forecasts the global data communication optical module market will reach $22.8 billion by 2026, with 800G and 1.6T products rapidly scaling. As an industry leader, Eoptolink exhibits characteristics of both profit explosion and high valuation, presenting a "Davis Double Play" scenario with strong future growth potential.
In summary, as AI progresses from training to multimodal applications, computing power demand is growing non-linearly. Optical modules, as core infrastructure for global computing power, are experiencing high prosperity supported by both strong earnings and order books. The Huabao ChiNext Artificial Intelligence ETF (159363) and its off-exchange counterparts allocate seventy percent of their portfolio to computing power, providing comprehensive exposure to leading players. The remaining thirty percent is allocated to AI applications, making the fund not only a core play on computing power but also a representative of AI application development.
MACD golden cross signals have formed, and these stocks are performing well.
Comments