The optical module sector continues to shine, with the Wind Optical Module (CPO) Index hitting a fresh record high on December 12. Seven stocks within the sector reached all-time highs this week. Industry experts highlight strong demand visibility, upwardly revised order guidance, and persistent supply shortages as key drivers, projecting sustained sector growth through 2027.

**Sector Momentum Builds** After two months of consolidation, the optical module rally reignited on November 25. The Wind CPO Index set four consecutive record highs from December 5-10 before briefly pausing and resuming its ascent. Among 19 tracked stocks, seven achieved historic price peaks this week, while 12 have doubled year-to-date. 仕佳光子 leads with a 500% surge, followed by 新易盛 and 源捷科技, both up over 400%.

**AI Catalysts Fuel Optimism** Recent developments—including Google’s enhanced TPU capabilities, DeepSeek-V3.2’s launch, Amazon’s Trainium3, and robust market reception for Moore Thread—underscore AI’s expansion. Nvidia, Alibaba, and AMD have dismissed bubble concerns, reinforcing long-term confidence. CICC notes the AI revolution’s transformative potential, likening it to the Industrial Revolution, with optical modules poised to benefit from escalating computing demands.

**Supply-Demand Dynamics** The sector enjoys both volume and price growth: 1.6T module prices surged, while 800G+ products show stabilized pricing amid robust demand. Cloud providers’ rising capex and accelerated tech upgrades sustain this momentum. Key A股 suppliers to global leaders warrant close attention.

**Earnings Surge** Q3 reports reveal stellar performance—only one sector firm reported losses, while 16 achieved revenue and profit growth. 源捷科技’s revenue jumped 115% YoY to ¥383 million, with net profit skyrocketing 19,348% to ¥106 million, driven by data-center CW silicon photonics products.

Sector leader 中际旭创 posted 2024 revenue of ¥23.86 billion (+122.6% YoY) and net profit of ¥5.17 billion (+137.9%). By Q3 2025, its revenue hit ¥25 billion (+44.4%), with profit reaching ¥7.13 billion (+90%), already surpassing 2024’s total. Gross margins expanded to 40.74%, up 7 percentage points.

With North American cloud giants (Amazon, Google, Meta, Microsoft) projected to spend $350 billion in 2026, 中际旭创’s overseas revenue—86.8% of total—reflects strategic Southeast Asian and North American production hubs, including a Malaysia facility producing 2 million 800G modules monthly.

**Buffett’s Endorsement** In a notable shift, Berkshire Hathaway invested $4.3 billion in Alphabet (Google’s parent) during Q3, marking its portfolio’s tenth-largest holding. This move, seen as a departure from Buffett’s traditional value focus, sparks debate—whether a late-career pivot or a nod to Alphabet’s cash-generating moat in search, cloud, and AI infrastructure, where optical modules play a critical role.

Market observers speculate this could signal Berkshire’s broader diversification ahead of Buffett’s retirement, though some caution it may be a tactical allocation given tech volatility.

*(Mentioned stocks are for illustrative purposes only.)*