On August 4th, Hong Kong-listed optical communication stocks saw a significant surge. ZJ Innolight (Stock Code: 03308) jumped over 18% during intraday trading, while Hai Guang Xin Zheng rose more than 19%. Cambridge Technology rallied over 10%, and Yangtze Optical Fibre and Cable and Converged Tech each gained over 5%.

The catalyst for this rally was a statement from Nvidia's Senior Vice President, Gilad Shainer, who announced that Co-Packaged Optics (CPO) is entering mass production. He specifically highlighted that the largest future opportunity in the optical communications market lies in Scale-up, which would require ten times the bandwidth performance of Scale-out, injecting strong momentum into the sector.

Additionally, Lumentum's CEO noted that the company is currently operating five InP wafer fabs, but its shipments remain more than 30% below customer demand. SemiAnalysis also pointed to an especially tight supply of Continuous Wave Distributed Feedback (CW DFB) InP lasers, which are used for near-package optical interconnects.