Understanding the Market | Most Optical Communication Concepts Rise, NVIDIA's CPO Technology Officially Enters Mass Production Stage, Citigroup Indicates Multiple Catalysts for the Sector in the Near Term
Most optical communication concept stocks rose, with significant gains in stocks such as CREALIGHTS. NVIDIA's CPO switches have been shipped, marking the official entry of this technology into the mass production stage. Citigroup pointed out that the sector is experiencing multiple catalysts recently and is optimistic about layout opportunities and valuation reassessment in the first half of 2026; Guosheng Securities believes that the trading structure of optical modules has improved, releasing short-term risks
According to the Zhitong Finance APP, most optical communication concept stocks have risen. As of the time of publication, CREALIGHTS (01191) rose by 14.39% to HKD 80.3; Cambridge Technology (06166) rose by 7.7% to HKD 72; Hongteng Precision (06088) rose by 4.04% to HKD 4.89; and Huiju Technology (01729) rose by 2.5% to HKD 13.52.
On the news front, recently, according to TrendForce, NVIDIA's next-generation Spectrum-X CPO switch has begun shipping to some partners, and Broadcom's 51.2T Bailly CPO switch is also continuing to ship in small quantities, marking the official entry of Co-Packaged Optics (CPO) technology into the mass production stage. TrendForce expects vertical integration to become the new normal in the industry. Manufacturers that can independently master silicon photonics design, optical engine manufacturing, and advanced packaging resources will gain a competitive advantage during the volume cycle of the CPO switch market from 2027 to 2028.
Citi stated that there may be layout opportunities in China's optical communication sector around the performance releases in the first half of 2026, with recent catalysts including the CIOE (China International Optoelectronic Exposition) in September, the Yunqi Conference, and ECOC (European Conference on Optical Communication). The bank also reaffirmed the industry's outlook for 2027 and the improved visibility of CPO/NPO (Co-Packaged/ Near-Packaged Optics), with strong shipment growth in the second half of the year recovering on a half-year basis. These positive factors will help the sector undergo a valuation reassessment. Guosheng Securities believes that the previously overcrowded trading structure in the optical module sector is improving, and short-term risks have been largely released
