Shares in the optical communication sector opened sharply higher across the board in Hong Kong this morning.
As of the time of writing, CREALIGHTS (01191) advanced 8% to HK$162, CIG (06166) climbed 7.11% to HK$129.5, ZJ INNOLIGHT (03308) rose 5.94% to HK$1,230, and YOFC (06869) gained 5.43% to HK$180.5.
On the news front, the 27th China International Optoelectronic Expo (CIOE) commenced today at the Shenzhen World Exhibition & Convention Center, running for three days. The event brings together a host of leading industry players along the supply chain, showcasing frontier products and solutions such as 1.6T high-speed pluggable optical modules, CPO/NPO co-packaged optics, and MPO high-speed fiber optic connectors.
According to a note from Guolian Minsheng Securities, based on the product advancements disclosed by exhibitors, 1.6T is progressively entering the phase of volume ramp-up, while 3.2T and higher-tier products are advancing through sample deliveries and customer validation. The industrialization progress of novel architectures including NPO, CPO, and XPO is expected to be a key highlight of this year's expo.
Overseas, despite all three major US stock indices closing lower overnight, optical communication stocks staged a defiant rally. Lumentum surged over 11%, while Coherent and Corning both advanced more than 7%, with Applied Optoelectronics climbing over 5%.
The direct catalysts include Qualcomm's announcement of a multi-generational custom AI chip collaboration agreement with Amazon, which encompasses high-speed optical interconnect technology for linking computing components, with chip orders potentially reaching up to US$60 billion over a decade. Meanwhile, Corning disclosed a multi-year, multi-billion-dollar supply agreement with US telecom giant Verizon, with the partnership set to extend through 2032.
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