On May 22, Convergence Technology rose 5.39% in regular trading, trading at HK$19.54/share, with trading volume of HK$103 million. The stock rebounded sharply as the optical communication sector broadly rallied on optimistic industry growth forecasts.
On the news front, JP Morgan cited Light Counting's latest research projecting the data center high-speed optical interconnect market to grow from approximately US$19 billion in 2025 to approximately US$47 billion in 2028, representing a compound annual growth rate of nearly 35%. The report highlighted that as AI cluster scale continues to expand, the industry bottleneck has shifted from single-point computing power to data transport efficiency between GPU/ASIC/XPU chips, making high-speed optical interconnects a critical piece of core infrastructure for AI data center network expansion.
As a manufacturer of fiber optic cable assemblies and digital wire products, Convergence Technology benefited from the sector-wide bullish sentiment. The rally also partially offset recent selling pressure following the company's completion of a discounted share placement at HK$21.00 per share on May 19, which had pushed the stock below the placement price in prior sessions.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments