On the second-to-last trading day before the holiday, February 12th, computing power hardware experienced a strong surge. Sectors such as Co-Packaged Optics (CPO), liquid cooling servers, and optical communications dominated the gainers list, with numerous stocks posting significant increases. Companies like Yangtze Optical Fibre And Cable Joint Stock Limited Company (601869) and Hengtong Optic-Electric Co.,Ltd. (600487) saw robust price advances.
The computing power sector continues its strong performance. On that day, the artificial intelligence hardware segment surged again, with key sub-sectors like CPO and optical communications both rising over 2%, ranking second and seventh respectively among more than 270 concept sectors. Both the CPO and optical communication theme indices reached new all-time highs, demonstrating sustained and stable growth.
Simultaneously, several individual stocks experienced strong rebounds. Many reached new price peaks, and others saw their shares hit the daily upward limit. Notably, many stocks have accelerated their main upward trends and doubled in price rapidly since their recent breakouts. For instance, Yangtze Optical Fibre And Cable Joint Stock Limited Company (601869) has surged over 200% since the rally began on November 25, 2025. Similarly, Hengtong Optic-Electric Co.,Ltd. (600487) has accumulated a gain of 110% from December 17, 2025, to the present.
This upward cycle in the computing power chain has lasted over a year. Investment focus is shifting from broad themes to specific segments, such as optical fiber, exemplified by the leading performances of Yangtze Optical Fibre And Cable and Hengtong Optic-Electric.
The sustained rise in the computing power theme is driven by multiple factors, including macroeconomic policies, industry developments, and significant corporate events. Macroeconomic support includes recent high-level government meetings emphasizing the deep integration of "AI+" across industries and urging state-owned enterprises to strengthen investment, particularly in expanding effective computing power capacity.
On the industry front, AI technology advancements continue to drive demand for computing power. The release of new, powerful open-source models signifies a major step forward, moving from basic code generation to handling complex system engineering.
Despite the overall sector warming, differentiation among sub-sectors and individual stocks is evident. Recent trends show capital flowing increasingly towards the optical fiber segment. Optical fiber, which uses light to transmit information through glass or plastic threads, serves as the "nervous system" connecting computing nodes. Its performance directly impacts the efficiency, stability, and scale of data transmission, which is core to computing power.
Growing computing power demands are creating new growth opportunities for optical fiber technology. This is corroborated by a recent major market event: a significant supply agreement worth up to $6 billion between Corning Incorporated and tech giant Meta for data center fiber cables, which subsequently boosted Corning's stock price.
Unlike other thematic concepts, the computing power industry chain is seeing tangible business results and earnings support. This, combined with increased capital expenditure driving demand for computing materials, underpins the sector's ability to attract continuous investment and sustain long-term growth, producing standout performers.
Many institutions express optimism regarding the computing power and optical fiber industry chains. Analyst reports highlight the accelerated adoption of CPO technology, citing multi-hundred-million-dollar orders and projecting a revenue surge. The recommendation is to focus on the CPO supply chain, including various optical components. Furthermore, the optical fiber industry is entering a phase of "tight supply with rising volumes and prices." It is advised to monitor companies with optical preform production capacity and those with significant fiber optic or specialty fiber output.
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