A-Share Optoelectronic Communication Sector Surges: Leading Enterprises Boost Capacity Amid AI-Driven Boom

On April 22, China’s A-share optoelectronic communication sector witnessed another robust rally, with share prices of leading optical module manufacturers such as Zhongji Innolight and New Easy Semi hitting all-time highs. The surge comes as the industry enters a high boom period driven by AI computing power upgrades and technological iteration, with solid fundamentals replacing speculative expectations as the core driving force.

Qu Fang, an investment consultant at Wanlian Securities, told Securities Daily that the current optoelectronic communication market differs essentially from pure thematic speculation. "2026 is the first year of large-scale mass production of 1.6T optical modules, while demand for 800G optical modules maintains steady growth," he said. Technological iteration and product upgrading are advancing continuously, shifting the market driver from expectation games to fundamental fulfillment.

Research reports from Shanxi Securities point out that leading optical module enterprises represented by Zhongji Innolight delivered better-than-expected performance in the first quarter. The main market trend is supported by upstream material capacity expansion, overseas catalytic effects and the fulfillment of leading enterprises’ performance. Zhongji Innolight’s 2026 Q1 report shows that the company achieved 19.496 billion yuan in operating income, a year-on-year increase of 192.12%, and 5.735 billion yuan in net profit attributable to listed shareholders, a year-on-year surge of 262.28%. The company stated that the shipment volume of 1.6T optical modules is expected to maintain sequential growth in subsequent quarters.

Morgan Stanley released a research report on April 20, noting that against the backdrop of continuous AI computing power upgrades, the optoelectronic communication industry still has enormous growth potential, with no signals to reverse the optimistic outlook. TrendForce’s latest report shows that the global AI-specific optical transceiver module market has entered a high-growth phase, projected to expand from 16.5 billion US dollars in 2025 to 26 billion US dollars in 2026, a year-on-year increase of over 57%.

"The entire optoelectronic communication industrial chain has entered a seller’s market, with high-end optical modules seeing both rising volume and prices," Qu Fang added. "Enterprises in the industrial chain delivered better-than-expected performance in the first quarter, maintaining a high industry prosperity."

Notably, many enterprises have launched capacity expansion and strategic layout. Suzhou Tianfu Optoelectronic Communication Co., Ltd. announced on the evening of April 21 that its wholly-owned subsidiary Singapore Tianfu plans to invest 700,000 Singapore dollars to establish a joint venture with Nasdaq-listed SuperX and APEX VERVE LIMITED, focusing on optical interconnection products and expanding overseas markets.

Other key players are also accelerating layout. Shenzhen Guangda Tong Chuang New Materials Co., Ltd. plans to invest 150 million yuan to set up a joint venture to incubate a high-speed silicon optical module intelligent manufacturing project. Accelink Technologies Co., Ltd. intends to raise no more than 3.5 billion yuan through private placement, with 2.083 billion yuan used for high-end capacity expansion of computing power center projects. Shaanxi Yuanjie Semiconductor Technology Co., Ltd. will invest about 1.251 billion yuan in the second phase of its optoelectronic communication semiconductor chip R&D and production base.

Wang Tieshan, Director of the Industrial Development and Investment Research Center at Xi’an Polytechnic University, told Securities Daily that with the deepening of AI large model and intelligent computing center construction, optoelectronic communication has become the fastest-growing segment in the AI industrial chain in terms of value increment.