On Friday, April 10, optical module and CPO (co-packaged optics) stocks surged again, driving the ChiNext AI sector to new highs. Leading optical module manufacturers Zhongji Innolight Co.,Ltd. and Eoptolink Technology Inc.,Ltd. both saw gains exceeding 6%, reaching new record highs. Eoptolink's market capitalization surpassed 500 billion yuan, while Zhongji Innolight exceeded 800 billion yuan. Statistics show that over the past year, the three major CPO players have experienced rapid growth, with an average increase of over 800%.
Among popular ETFs, the ChiNext AI ETF Hua Bao (159363), which holds significant positions in leading optical module companies, continued its strong performance. It rose 2.09% to set a new historical high, with daily turnover reaching 968 million yuan. Reviewing the week, fund 159363 accelerated its breakthrough, posting a cumulative intra-week gain of 11.52% and achieving five consecutive weeks of positive returns.
Market analysis suggests the strong performance of the leading optical module trio—Zhongji Innolight, Eoptolink, and Suzhou Tfc Optical Communication Co.,Ltd.—along with consecutive breakthroughs in the ChiNext AI sector, is primarily driven by a combination of three factors: surging demand, tightening supply, and technological catalysts.
On the demand side, the explosion of AI applications and high capital expenditure from cloud providers are key drivers. For large models, video generation models like Happy Horse consume significantly more computing power than text models, directly boosting rigid demand for 800G/1.6T optical modules. Furthermore, with the Google conference approaching, market expectations are high for announcements regarding a new generation of TPUs and progress on Optical Circuit Switches (OCS), indicating sustained high capital expenditure. Financially, Zhongji Innolight and Eoptolink have reported substantial net profit growth for 2025, with high industry prosperity already translating into substantial orders.
On the supply side, high-end products are entering a volume production phase, accompanied by significant capacity barriers. 2026 marks the first year of commercialization for 1.6T optical modules. Zhongji Innolight has secured an exclusive order from NVIDIA scheduled through 2027, while Eoptolink has also begun mass production of 1.6T modules. These higher-speed products significantly improve gross margins. Simultaneously, the complex manufacturing processes for silicon photonics modules and high barriers in coupling and packaging/testing limit production expansion by new entrants, allowing leading manufacturers to benefit from supply rigidity.
Technologically, Google's OCS and silicon photonics technology are opening new growth avenues. If the Google conference reveals practical applications for OCS optical circuit switches, it will drive demand for optical switches and related modules. Additionally, Suzhou Tfc Optical Communication Co.,Ltd. has achieved mass production of 1.6T optical engines, positioning it advantageously for next-generation CPO packaging technology.
Overall, as AI transitions from training to multimodal applications, computing power demand is growing non-linearly. The trio, as core global suppliers for computing infrastructure, enjoys strong industry momentum backed by both earnings performance and firm orders. The underlying index of the ChiNext AI ETF Hua Bao (159363) and its feeder funds allocates approximately 70% to computing power and about 30% to AI applications, making it not only a core computing power investment but also a representative of genuine AI application exposure.
MACD golden cross signals have formed, indicating positive momentum for these stocks.
Comments