The CPO concept is once again active, Changxin Bochuang rises over 10%, and Changfei Optical Fiber continues to hit new highs

CPO concept became active again during the trading day on the 11th. As of the latest report, Changxin Bochuang rose over 10%, and Reisconda hit the daily limit, achieving two consecutive limit-ups; Changfei Optical Fiber rose over 8%, briefly hitting the daily limit and reaching new highs; Huagong Technology increased about 6%, also reaching new highs.

In the industry, with the rapid upgrade and iteration of GPUs and ASICs, computing power performance continues to improve, while the demand for data transmission has also increased significantly. In AI data centers, more and more customers prefer to choose network hardware with higher bandwidth. The larger the bandwidth, the lower the cost per bit, the lower the power consumption, and the smaller the size.

CITIC Securities believes that the high growth rate of 800G optical modules already reflects the urgent demand for bandwidth in AI. By 2026, demand for 800G optical modules is expected to continue growing rapidly, and the shipment scale of 1.6T modules will also increase significantly. The development of 3.2T optical modules has officially begun.

The firm states that compared to traditional cloud computing networks, AI training networking is shifting from leaf-spine architecture to fat-tree architecture. The number of switches and optical modules has increased significantly, and with the growth of communication data volume, the requirements for optical module speeds are also higher. 800G optical modules started volume production in 2023 and will maintain rapid growth from 2024 to 2026; 1.6T modules will begin shipments in 2025 and are expected to ramp up in 2026. The entire optical module industry chain is entering a cycle of volume and price increases.