During the early trading session on June 2nd, the optical module CPO sector saw a rebound and upward movement.
Zhongji Innolight Co.,Ltd. (SZSE: 300308)
rose over 2%, while Eoptolink Technology Inc.,Ltd. (SZSE: 300502)
surged more than 5%. Among popular ETFs, the ChiNext Artificial Intelligence ETF (159363), which has an optical module CPO concentration exceeding 50% and boasts the highest "Yi-Zhong-Tian" concentration, saw a significant intraday rally with trading volume surpassing 3.5 billion yuan.
Analyst Perspective on Sector Outlook
One securities firm has stated that the long-term evolutionary logic of the computing power sector remains unshaken. As we move into June, demand expectations for optical modules in 2027 are becoming clearer at an accelerating pace. Furthermore, the supply constraints from shortages of key upstream components, which previously hampered deliveries, are gradually reaching an inflection point towards improvement. The production capacity and earnings potential of leading optical module manufacturers are expected to be released more rapidly, prompting a recommendation to refocus on major optical players, with particular attention on the two leaders, Zhongji Innolight and Eoptolink.
Key Drivers for the Sector
Firstly, demand expectations for 2027 are becoming increasingly clear, with industry sentiment continuing its upward trend. Entering June, overseas Cloud Service Providers (CSPs) and core chip manufacturers are intensively releasing signals such as order guidance and capacity plans. This is bringing the demand trajectory and earnings profile for the full year 2027 into sharper focus, sustaining the overall positive sentiment within the industry.
Secondly, as supply shortages of core materials like optical chips gradually ease, the earnings of leading optical module companies previously constrained by supply are poised for accelerated release. Leading manufacturers with strong supply chain control and large order scales are expected to demonstrate the most significant capacity flexibility and earnings realization capability.
ETF as a Strategic Tool
For investors seeking a consolidated approach to access opportunities in both optical modules and AI applications, it is suggested to closely monitor the ChiNext Artificial Intelligence ETF (159363) and its corresponding feeder funds. This ETF is noted for leading its category in both size and liquidity. Its underlying index currently has an optical module concentration exceeding 50%, a high "Yi-Zhong-Tian" concentration, and allocates approximately 30% of its portfolio to AI applications, positioning it not only as a core computing power play but also as a representative of AI application exposure.
It is noteworthy that, as of May 29, 2026, the ChiNext Artificial Intelligence ETF (159363) reached a latest size of 74.26 billion yuan, ranking first in size within the entire market's innovation-themed AI sector. Its average daily trading volume over the past six months exceeded 800 million yuan, also leading the AI sector in trading activity across the market.
Investment involves risks. The performance of the underlying index is not indicative of the fund's future performance. Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. The information provided here is for reference only and does not constitute investment advice.
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