On May 12th, the share price of Zhongji Innolight Co.,Ltd., a leading A-share optical module manufacturer, surged over 7% intraday, breaking through the 1000 yuan mark. Its total market capitalization climbed to 1.11 trillion yuan, making it the second stock in ChiNext history and the tenth in A-share history to reach this milestone. The stock has gained over 60% year-to-date and an astonishing 960% in the past year. In the ETF space, the ChiNext Artificial Intelligence ETF Huabao (159363), which has the highest concentration of key optical module stocks in the market with over 50% exposure, rose 1% against the market trend, setting a new post-listing high. Its underlying index has skyrocketed 241% since its rebound from the low on April 8th last year, outperforming its peers.
Hot Topic Analysis As a global leader in the optical module sector, Zhongji Innolight's share price breaking the 1000 yuan barrier and achieving a total market cap of 1.11 trillion yuan signifies the further consolidation of its leading position in AI computing power infrastructure. The company's market cap exceeded one trillion yuan intraday, with a near 1000% gain over the past year, demonstrating strong momentum against the backdrop of surging market demand for high-speed optical modules. This achievement is not an isolated event but a reflection of the rise of the hard-tech cluster in the "Suzhou sector." Leveraging its complete optical communication industry chain and geographical advantages, Suzhou has attracted a large number of upstream and downstream enterprises, forming a powerful industrial cluster effect. Currently, the prosperity of optical communication companies like Zhongji Innolight benefits from the global wave of AI computing power construction. The demand for 800G and higher-speed optical modules has become essential, directly driving rapid growth in corporate performance. Simultaneously, the group of thousand-yuan stocks in the A-share market is expanding rapidly, with hard-tech companies like Lianxun Instruments and Yuanjie Technology successively crossing the thousand-yuan threshold. This reflects the capital market's high valuation premium for companies with core technological barriers and domestic substitution logic. These companies are mostly positioned in critical segments of the AI computing power industry chain. For instance, Zhongji Innolight provides high-end optical modules, while Yuanjie Technology supplies core optical chips, together forming the "shovel sellers" ecosystem of the AI era. Investors should note that the rise of these hard-tech thousand-yuan stocks is based on performance delivery and technological moats, differing from consumer stocks previously driven by marketing. As companies like Zhongji Innolight continue to lead technological iterations, their market share and technological leadership in global competition are expected to translate into long-term market cap support. However, potential risks from global supply chain fluctuations and intensifying industry competition also warrant attention.
Sector Insight The leading optical module company Zhongji Innolight saw its share price break the 1000 yuan mark, reaching a market cap of 1.11 trillion yuan. This not only makes it the tenth thousand-yuan stock in A-share history but also highlights its absolute leading position in the core segment of AI infrastructure. This market performance is closely related to strong favor from institutional funds. In the first quarter, the allocation proportion of communication sector funds surged to 14.5%, hitting the highest level for the same period in nearly four years, with core optical module holdings like Zhongji Innolight consistently ranking among the top holdings. From an industry fundamental perspective, Nvidia's recent $2 billion investment in an optical communication giant essentially "locks in" medium-term demand certainty for optical module manufacturers through "capacity locking." Given the global leading shipment volumes and well-established overseas production capacity of domestic manufacturers, this competitive landscape is difficult to alter. Concurrently, with the explosive growth of applications like "digital employees," the demand for inference computing power is growing exponentially, further catalyzing the investment logic for the optical communication sector. Furthermore, at the policy level, computing power networks have been designated as a key support for emerging industry investment in the "15th Five-Year Plan." Projects valued at hundreds of billions or even trillions of yuan provide long-term growth momentum for the industry. Regarding fund holdings, although some second-tier manufacturers may experience volatility due to valuation repair expectations, the overall overweight ratio has reached 9.7%, with funds continuing to concentrate on leading optical module companies capable of deploying new technologies. In summary, driven by the combined resonance of industrial trends, capital allocation, and policy support, the optical communication sector maintains strong and sustained prosperity with significant investment value.
Investment Rationale As the global leader in optical modules, Zhongji Innolight's share price broke the 1000 yuan mark intraday, with its total market cap climbing to 1.11 trillion yuan, demonstrating its absolute dominance in AI computing power infrastructure. Benefiting from the global AI construction wave and surging demand for 800G and high-speed optical modules, the company exhibits strong performance momentum, with cumulative gains exceeding 960% over the past year and over 60% year-to-date, showcasing significant market profitability. Strategic investments from giants like Nvidia further "lock in" production capacity, anchoring extremely high certainty for medium-term demand. Simultaneously, institutional funds continue to increase their holdings. The fund allocation ratio for the communication sector has reached a near four-year high, with a clear overweight characteristic, indicating long-term optimism from professional investors. On the policy front, the "15th Five-Year Plan" explicitly positions computing power and satellite internet as pillars. Coupled with expectations of liquidity easing from potential Fed rate cuts, technology stock valuations are poised for repair. Leveraging technological iteration and global expansion, Zhongji Innolight is evolving from a core player in the "shovel sellers" ecosystem into a long-term market cap benchmark. The resonance of hard-tech cluster effects and domestic substitution logic provides investors with highly attractive allocation opportunities. To capture opportunities in leading optical module and CPO (Co-Packaged Optics) companies, it is recommended to focus on the ChiNext Artificial Intelligence ETF Huabao (159363) and its off-exchange feeder funds (Class A: 023407, Class C: 023408), which lead their category in size and liquidity. The underlying index's latest optical module exposure is 50%, comprehensively covering key players, with approximately 30% allocated to AI applications, representing not just the core of computing power but also AI application leaders. It is noteworthy that as of May 8, 2026, the ChiNext Artificial Intelligence ETF Huabao (159363) had a latest size exceeding 7 billion yuan, ranking first in size within the dual-innovation AI theme across the market! Its average daily turnover over the past six months was approximately 800 million yuan, also ranking first in trading activity within the AI theme across the market. Data source: SSE, SZSE, etc. ETF Fee Note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission not exceeding 0.5%. In-market trading fees are subject to the actual charges by securities firms; no sales service fee is charged. Feeder Fund Fee Note: The ChiNext Artificial Intelligence ETF Feeder Fund Class C charges no subscription fee; a redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more; a sales service fee of 0.3% applies. For the ChiNext Artificial Intelligence ETF Feeder Fund Class A, subscription fees are 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat 1000 yuan per transaction for 2 million yuan or above; a redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more; no sales service fee is charged. Risk Disclosure: The ChiNext Artificial Intelligence ETF Huabao passively tracks the ChiNext Artificial Intelligence Index. The index base date is December 28, 2018, and its release date is July 11, 2024. The index's annual performance from 2021 to 2025 was 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. The index's constituent stocks are adjusted according to its compilation rules; its backtested historical performance does not indicate future results. Index constituents mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk等级 as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Suitability matching opinions are subject to销售机构. Any information appearing in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment involves risks. Past performance of a fund does not indicate its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
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