Beneficiary AI computing power demand drives overall performance growth of listed optical module companies

Securities Daily Reporter Li Wanchengxi

According to Wind Information data, among the 20 listed companies in the A-share optical module sector, 14 achieved year-over-year positive net profit growth in 2025, 2 turned losses into profits; 4 experienced a decline in net profit year-over-year. Notably, among the 14 companies with positive net profit growth, 5 saw their profits more than double compared to the previous year. The high prosperity logic of the industry continues to be fulfilled, becoming a key focus in the technology track of the capital market.

Deep Technology Research Institute President Zhang Xiaorong said in an interview with Securities Daily: “The high prosperity of the optical module industry centers around ‘computing power connectivity,’ driving the industry from supporting links in the supply chain to a core hub of computing infrastructure. The pattern of ‘volume and price increase’ continues to deepen. Leading companies leverage technological barriers, high-quality customer resources, and first-mover advantages in capacity layout to achieve significant performance growth.”

Industry high prosperity continues

From the demand side, the increase in AI computing power demand is the core engine driving industry growth. Qiu Sisheng, Chief Economist of Shenzhen WanZhong Consulting Management Co., Ltd., told Securities Daily: “The large-scale deployment of AI models worldwide and the continuous expansion of computing clusters directly boost the demand for high-speed optical modules. Meanwhile, the accelerated deployment of AI in autonomous driving, industrial internet, and other scenarios further stabilizes and sustains demand.”

Data from industry organization LightCounting confirms this trend: global optical module sales in 2025 will exceed $23 billion, an increase of about 50% over 2024, mainly driven by record capital expenditures from hyperscale cloud service providers like Google and Amazon, and AI infrastructure demand. Among these, high-speed optical modules used in AI clusters and the CPO (co-packaged optics) market perform particularly well, with a market size reaching $16.5 billion in 2025, expected to grow to $26 billion in 2026, with a two-year compound growth rate of about 60%, becoming the core driver of industry growth.

Jianjun Hao, Founder of Fujian Huace Brand Positioning Consulting, said in an interview with Securities Daily: “Accelerated technological iteration promotes product structure upgrades and profit pattern reconstruction. Since 2025, 800G optical modules have become mainstream, 1.6T optical modules have achieved small-batch delivery, and silicon photonics penetration has rapidly increased, forming a ‘high-speed product volume + gross margin increase’ double benefit. Among them, small-batch delivery of 1.6T optical modules has become a new highlight in the industry.”

Guo Tao, Deputy Director of China E-commerce Expert Service Center, told Securities Daily: “Behind the high prosperity of the industry, there are obvious structural differentiation issues: high-speed products like 1.6T optical modules face tight capacity and rising volume and price, while low-speed products like 10G/25G/100G are caught in homogeneous competition. Companies lacking the ability for mass production and delivery of high-speed products face increasing operational pressure, which will lead to further resource, order, and profit concentration among leading players.”

Company performance upward trend

The high prosperity of the industry has been fully transmitted to the performance of listed companies. Many optical module listed companies have achieved significant performance increases in 2025 thanks to advantages in high-speed product positioning, global customer deployment, and ample capacity reserves, with industry leaders performing especially well.

For example, Chengdu New Easy盛 Communication Technology Co., Ltd. (hereinafter “New Easy盛”) achieved a net profit attributable to shareholders of 1.6T yuan in 2025, a year-on-year increase of 235.89%; Zhongji Xuchuang Co., Ltd. (hereinafter “Zhongji Xuchuang”) reported a net profit attributable to shareholders of 1.6T yuan in 2025, up 108.78%; Suzhou Tianfu Optical Communications Co., Ltd. posted a net profit attributable to shareholders of 2.017 billion yuan, up 50.15%. Additionally, Shanghai Jianqiao Technology Co., Ltd., Zhuhai Guangku Technology Co., Ltd., and other companies also saw substantial growth.

Overall, many listed companies mentioned in their annual reports that their performance growth mainly benefits from the explosive demand for global AI computing power and the surge in demand for high-speed optical modules. For example, Zhongji Xuchuang’s annual report disclosed that performance growth was driven by strong investments from terminal customers in computing infrastructure, with rapid growth in product shipments, especially the increasing proportion of high-speed optical modules. New Easy盛 noted that 400G, 800G, 1.6T, and even higher-speed optical interconnect products will serve as the company’s core products and growth engines. To meet the ongoing market demand and strengthen industry position, many companies have explicitly stated they will continue to expand capacity.

Regarding performance in 2026, many companies are optimistic, with sufficient on-hand orders serving as a key support.

Liu Hanshu, Secretary of the Board of Huagong Technology Industry Co., Ltd., told Securities Daily: “Currently, there are 400k units of 1.6T optical modules on order from domestic and international customers; 26B NPO products already have on-hand orders for 2026 and are currently being delivered. The company will collaborate with leading manufacturers and switch chip vendors to achieve mass supply this year, aiming for larger-scale orders next year.”

A related person in charge at Zhongji Xuchuang said the company has received some orders for the entire 2026 year, and expects performance to continue growing in 2026. A relevant person at New Easy盛 stated that orders for 1.6T optical modules have increased significantly compared to last year, with rapid growth expected each quarter this year. 1.6T and 800G optical modules will be the main products delivered this year.

Cao Zhe, Chief Investment Officer of Beijing Aiwen Zhilu Investment Management Co., Ltd., said in an interview: “Overall, the rapid technological iteration and product upgrades in the optical module industry will allow leading companies with high-speed R&D, large customer binding, and forward-looking capacity layout to continue benefiting from volume and price advantages. As global capital expenditure on computing power remains high and new infrastructure like domestic computing networks continues to be implemented, the high prosperity cycle of the industry is expected to last long-term.”