After enduring a steep correction that cut their prices roughly in half, the "Yizhongtian" trio of optical communication stocks staged a powerful rebound, adding nearly 110 billion yuan in combined market value in just one trading session.
Analysts suggest the sharp rally in these three stocks was driven primarily by a technical bounce following significant short-term declines. In addition, with valuations having fallen considerably, some funds have begun bargain-hunting.
In the secondary market, the three companies with highly correlated price movements surged together on November 4. At the close, Eoptolink Technology Inc Ltd (SZSE: 300502) climbed 13.35% to 196.5 yuan, Zhongji Innolight Co Ltd (SZSE: 300308) rose 11.07% to 533.38 yuan, and Suzhou TFC Optical Communication Co Ltd (SZSE: 300394) gained 10.02% to 136 yuan. The combined single-day market value increase for the three companies reached 108.43 billion yuan.
From an earnings perspective, third-quarter results for A-share listed companies in 2026 have been fully disclosed, and the core performance profile of the optical communication sector is becoming increasingly clear. The explosive growth delivered by leading companies once again validates the industry trend of sustained high prosperity in AI computing power demand and infrastructure construction.
Industry observers noted that despite a high base from the same period last year, the optical communication sector still demonstrated strong growth momentum in the first three quarters of 2026, further confirming that the industry as a whole remains in a high-prosperity cycle. Looking ahead, market attention is likely to remain focused on changes in downstream computing power demand, the pace of high-speed optical module volume ramps, and how individual companies perform in capacity expansion and customer development.
As far as the industry itself is concerned, the positive trend has not changed. After the earlier sharp correction, valuation risks have been substantially released. Regarding the outlook, institutional analysts have expressed optimism.
"From an industry perspective, the global computing power race triggered by generative artificial intelligence is continuously intensifying, and capital expenditure by major North American cloud computing companies has been revised upward repeatedly," said Li Xiaojie, an optical communication industry analyst, in an interview. Optical modules serve as the 'blood vessels' of data transmission and represent the segment within AI infrastructure with the strongest certainty of earnings realization. The pace of technological evolution has not slowed either, with 800G products only just entering their peak volume ramp while the iteration window for 1.6T products is already imminent. More critically, domestic manufacturers have established a solid global competitive moat in this field, deeply integrated into overseas supply chains, and the order visibility and profitability of leading enterprises remain at historical highs.
"After the recent correction in the optical communication sector, market concerns about a slowdown in AI capital expenditure are expected to be gradually digested. We remain optimistic about the continued prosperity of the optical communication industry and the sector's recovery," Li Xiaojie stated.
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