A bold 1000x computing capacity expansion plan by a tech giant has sent shockwaves through capital markets. Alphabet's AI infrastructure head Amin Vahdat recently stated that to meet surging AI demand, the company must double its AI computing power every six months. This ambitious roadmap implies approximately 1000-fold growth within 4-5 years, primarily addressing explosive AI application needs.
The announcement triggered immediate market reactions. On November 25 morning, China's optical communication stocks surged sharply, with Alphabet's supply chain partners leading gains. Key movers included: - Changguang Huaxin (20% daily limit up) - Fujing Technology (10% limit up) - Guangku Technology (20% limit up) - Tengjing Technology (peaked +15%) - Shijia Photon (+9.69%) - Jiguang Technology (+13.87%) Internationally, Lumentum Holdings Inc. jumped 17.13%.
The rally stems from Alphabet's aggressive AI computing roadmap. Vahdat emphasized that AI infrastructure competition represents the most critical and costly aspect of the AI race. Major players including Alphabet, Microsoft, Amazon, and Meta are all planning significant investment increases in this sector. TSMC CEO C.C. Wei recently echoed similar concerns about advanced process capacity shortages, noting current production falls about three times short of client projections.
Industry experts anticipate intensified competition in AI and cloud computing resources through 2026. Changguang Huaxin disclosed on November 12 its 100G EML has entered mass production, with 200G EML samples being delivered. Multiple chips are undergoing verification by overseas optical module manufacturers. The company reported Q1-Q3 revenue of 339 million yuan (+67.42% YoY) and net profit of 20.94 million yuan (turning profitable YoY). It also participates in laser fusion projects globally, developing high-efficiency laser chips and high-power array modules.
Guangku Technology announced on November 21 a 1.6395 billion yuan acquisition plan for 99.97% of Anjiexun Optoelectronics, aiming to deepen optical communication integration. Anjiexun maintains partnerships with industry leaders like Zhongji Innolight and supplies end products to NVIDIA, Alphabet, and Amazon data centers.
Fujing Technology, specializing in laser crystals and optical components critical for optical modules, serves as a key supplier in computing hardware supply chains. Its products include diffraction gratings for WSS devices and various polarization optics. The company is a major domestic supplier of YVO4 crystals to industry leaders like Lumentum and Coherent. Coherent recently began sampling 400mW CW lasers for CPO and silicon photonics applications, with seven clients evaluating its LCOS-based OCS technology.
Tengjing Technology, another major YVO4 supplier, received an 87.6 million yuan order for YVO4 crystals last month. The company accelerates production expansion for high-speed optical communication materials in Hefei, reporting positive order progress in its 2025 interim report.
Lumentum's R300 OCS (300x300 port) is currently sampling with hyperscale cloud clients, targeting H2 2025 commercialization. Industry reports suggest both Lumentum and Coherent began fulfilling initial OCS orders in Q1, positioning them as direct suppliers to cloud providers like Alphabet.