Straight-line surge! Two major positive news triggers explosion! Many A-shares hit new highs

Optical communication concept stocks, collectively surging!

Today (February 24), A-shares in the optical communication sector saw a major rally. Within just one minute of trading, Far East Sheng hit the daily limit-up. Subsequently, Changjiang Communication, Huamai Technology, Huagong Technology, Longfei Optical Fiber, and others also hit the limit-up. By the close of trading, the overall gain in the optical communication sector exceeded 3%, with more than ten stocks hitting the limit-up or rising over 10%.

Market analysts point out that the big surge in the optical communication sector is driven by two major “positive factors”: First, Chinese scientists recently made breakthrough progress in optical communication and 6G fields; second, during the holiday period, some U.S. optical communication concept stocks continued to rise, with Corning, Lumentum, and Coherent all reaching new historical highs this Monday.

Research institutions indicate that the rise of AI applications worldwide increases demand for computing power, and upstream equipment and materials such as optical communication and PCBs will continue to benefit.

Optical communication concept stocks surge

On the first trading day of the Year of the Horse, the A-share optical communication sector performed strongly. By the close, Yunzong Technology hit the 20% limit-up, while Huagong Technology, Far East Sheng, Huamai Technology, Longfei Optical Fiber, Changjiang Communication, Tongding Interconnection, and others also hit the 10% limit-up.

Additionally, Sanhuan Group, Tianfu Communication, Juguang Technology, Ligong Optical, Deke Li, and others rose over 10%, Tongguang Cable, Yuan Dong Shares, Xingsen Technology rose over 8%, and Han’s Laser increased nearly 8%. Among them, Longfei Optical Fiber, Juguang Technology, Tianfu Communication, Sanhuan Group, Han’s Laser, and others all set new historical highs.

According to “China Optical Valley” news on February 22, during the Spring Festival, multiple business units under Huagong Technology continued production without interruption. At Huagong Technology’s optoelectronic information R&D Park (Phase I), high-speed optical modules are being produced in large quantities on automated lines, with trucks loaded with products ready to depart for Hualu Airport, heading to frontline AI applications worldwide.

“The company’s connected business orders are scheduled through Q4 2026, and the AI high-speed optical module production line operates 24/7 at full capacity,” said the head of Huagong Technology’s optical module business. During the Spring Festival, the company’s Wuhan and Thailand production bases operated fully, resuming work on the first day of the lunar new year to ensure mass production and delivery of 1.6T, 800G, and other high-speed optical modules.

Furthermore, according to Science and Technology Daily and the National Center for Information Optoelectronics Innovation, Chinese scientists recently achieved breakthroughs in optical communication and 6G, leading the world in cross-network integration between fiber optic and wireless communication systems. The independently developed “fiber-wireless integrated fusion communication system” set a new record for data transmission speed. This achievement was published online in Nature on January 19.

The rise of AI data center computing power and the vigorous development of 6G demand high-speed, low-latency signal transmission across diverse scenarios. However, there exists a “bandwidth gap” between fiber optic and wireless communication in signal architecture and hardware constraints.

To address this, Professor Xingjun Wang and Researcher Haowen Shu from the School of Electronics at Peking University, along with Academician Shao Hua Yu from Pengcheng Laboratory, Associate Professor Baile Chen from ShanghaiTech University, and Dr. Xiao Xi from the National Center for Information Optoelectronics Innovation, jointly proposed the concept of integrated “fiber-wireless fusion communication” for the first time internationally, achieving seamless cross-network integration between fiber and wireless communication systems.

Using self-developed ultra-wideband optoelectronic integrated chips and AI-powered advanced equalization algorithms, the team supports record-breaking data transmission speeds in all major telecom scenarios (including fiber, wireless, and hybrid links), enabling “one system, cross-scenario multiplexing.”

This achievement broke three world records: modulator bandwidth exceeding 250GHz; 512 Gbit of data transmitted in one second through a single fiber; wireless transmission reaching 400 Gbit in one second.

Institutions: Explosive growth in computing power demand is certain

During the Spring Festival, intensive updates of AI large models worldwide reveal a clear industry trend: shifting from parameter competition focused on dialogue intelligence to a productivity competition emphasizing execution intelligence and engineering efficiency. Flagship models like ByteDance’s Seedance 2.0, Alibaba’s Qwen 3.5, Google’s Gemini 3.1 Pro, and Anthropic’s Claude Sonnet 4.6 focus on cost-performance and handling complex tasks, accelerating AI large models’ role as productivity tools.

Guosheng Securities notes that major tech giants have released a series of significant model updates within just two weeks. Coupled with the new growth in optical communication driven by CPO (chip-scale optical modules) and rising fiber optic cable prices, the optical communication sector remains highly optimistic.

Huaxi Securities states that the demand for tokens in the AI industry may continue to grow daily. Whether it’s the evolution of large models from chatbots to agents or the enhancement of multimodal capabilities, there will be substantial token demand. The need for computing power will also drive demand for upstream equipment and materials, such as optical communication, PCBs (including ultra-hard materials, fiberglass fabrics), data centers, cloud computing services, and power supplies, including gas turbines and space photovoltaics.

Four major North American cloud providers—Microsoft, Amazon, Meta, and Google—are expected to accelerate their capital expenditures through 2026, driven by explosive inference demand and the advent of the agent era. Huaxi Securities states that the surge in cloud vendors’ capital spending is spreading through the entire computing industry chain, from upstream AI chips and optical modules to midstream servers and data centers, and downstream IDC services, boosting industry prosperity.

“Global demand for computing power is certain to explode, with optical modules being the core infrastructure of AI hardware. Domestic optical module suppliers hold major global market shares; as optical communication advances toward higher speeds, high-speed optical modules, fiber optics, CPO, liquid cooling, and copper connection technologies are expected to benefit continuously,” said Industrial Securities in a recent research report.

As the optical communication industry accelerates toward 800G and above 1.6T, and CPO technology moves from validation to industrialization, Guotou Securities recommends focusing on high-quality targets that have achieved substantial breakthroughs in core components and key processes and have entered verification systems with leading clients.

(Source: China Securities Journal)