Shares of optical communication concept stocks rallied strongly on Thursday. As of writing, Haiguang Xinzheng (01191) jumped 10.01% to HKD 91.25, Xizhi Technology-P (01879) surged 8.65% to HKD 351.8, Yangtze Optical Fibre and Cable (06869) climbed 7.77% to HKD 131.7, Zhongji Innolight (03308) rose 7.46% to HKD 1095, Cambridge Technology (06166) gained 6.97% to HKD 87.5, and Huiju Technology (01729) advanced 6.22% to HKD 16.39.

On the news front, US optical communications leader Lumentum (LITE.US) reported its fiscal fourth-quarter results after the bell on August 11, with revenue soaring 109% year-over-year to $1.01 billion and adjusted earnings per share surging 267%. Additionally, Lumentum's guidance for the first quarter of fiscal 2027 significantly exceeded market expectations. Notably, CEO Michael Hurlston stated that the supply-demand balance for core optical components is severely imbalanced, with pump laser shipments surging over 80% year-over-year, and that the company will remain completely sold out for the foreseeable future.

Guotai Haitong Securities noted that the strong earnings guidance from US optical communication companies reinforces the fundamentals of the sector, and it sees an inflection point opportunity for the communications industry. Driven by AI-powered network upgrades and robust overseas demand, core domestic companies are well-positioned to benefit from the global infrastructure wave. The broker believes that a fully localized supply chain is entering a new cycle, with new connections potentially reaching an industry development inflection point in 2026.

Kaiyuan Securities, on the other hand, argued that the sustainability of the optical communication industry trend is primarily tied to two key indicators: the capital expenditure expectations of the four major North American cloud providers and the pace of downstream commercialization. Meanwhile, domestic optical chip companies are also hitting a critical inflection point, transitioning from validation to mass production and from samples to orders, with industry progress expected to accelerate further. The brokerage reiterated its conviction in the upward trajectory of the optical communication sector and advised investors to pay close attention to the entire supply chain.