CONANT OPTICAL (02276) rose nearly 4%, gaining 3.76% to HKD 52.4 by the time of writing, with a turnover of HKD 10.66 million. The surge follows the recent launch of Quark AI glasses by Alibaba, marking its official entry into the AI glasses sector. Tech giants like Huawei and Xiaomi have already established their presence in this space, intensifying market competition.

According to IDC projections, global smart glasses shipments are expected to exceed 23.687 million units by 2026 and surpass 40 million units by 2029. The market is forecasted to grow at a compound annual growth rate (CAGR) of 55.6% from 2024 to 2029, highlighting significant potential.

Citi noted that AI glasses, still in the developmental phase, are poised to become the next-generation high-growth AI edge devices. The bank predicts AI glasses shipments will reach approximately 112 million units by 2030, reflecting a CAGR of 105% from 2024. The market size is estimated to hit USD 40 billion by 2030, with a CAGR of 112% over the same period.

Citi further emphasized that optical components are critical for AI or augmented reality (AR) glasses, accounting for 40% to 70% of the bill of materials. The bank favors companies with high exposure in the supply chain or those heavily weighted in optical business segments.