NVIDIA's latest earnings report has once again reinforced global expectations for AI computing power expansion, driving up valuations across upstream optical module and optical connectivity supply chains. The domestic market evolution is transitioning from "performance realization" to "expectation amplification," forming a second wave of market activity. Under the Scale-Up trend, the optical communications industry is welcoming a new round of growth opportunities, with technological iteration and demand upgrades jointly driving the industry toward a new phase. The computing power sector remains optimistic, with strong recommendations for computing power supply chain companies such as optical module industry leaders Zhongji Innolight (300308.SZ) and Eoptolink (300502.SZ).
**NVIDIA Earnings Reinforce AI Expectations, Optical Module Sector Benefits**
NVIDIA's earnings report has once again reinforced AI expansion expectations. NVIDIA published its FY26Q2 earnings on August 28, with revenue reaching $46.7 billion, up 56% year-over-year and 6% quarter-over-quarter, exceeding the original guidance of $45 billion. FY26Q3 revenue guidance is $54 billion (±2%), and after eliminating H20 impact, revenue has returned to high growth.
Data center revenue showed steady growth. Data center business revenue was $41.1 billion, up 5% quarter-over-quarter and 56% year-over-year, accounting for over 80% of total revenue. Benefiting from Blackwell architecture product volume, Blackwell data center revenue increased 17% quarter-over-quarter, particularly as inference and training performance demands explode, with Blackwell becoming the core of global AI platforms. GB300 chips have begun mass delivery, with full production starting in late July and early August, and third-quarter production expected to accelerate further.
Network importance is becoming prominent, with optical interconnects expected to become key technology supporting Scale-Up. Data center computing revenue was $33.8 billion, up 50% year-over-year but down 1% quarter-over-quarter. Network revenue was $7.3 billion, up 98% year-over-year and 46% quarter-over-quarter, far exceeding market expectations. Q2 network growth was significantly faster than computing, mainly due to NVL72's Scale-Up switch tray ramp-up, and its rapid growth also proves that network importance is gradually becoming prominent in high-performance demands.
On one hand, AI clusters are becoming increasingly modular and distributed, with interconnect latency between GPUs becoming a bottleneck for performance improvement, making high-performance networks an important optimization variable. On the other hand, under future higher-performance cluster demands, to avoid GPU idle time waiting for communication, customers may need to simultaneously deploy matching switch networking solutions, with networks being the prerequisite for AI system performance release. In this context, optical interconnects, as solutions capable of breaking through bandwidth and energy consumption physical bottlenecks, will become key technology supporting Scale-Up architecture in networks.
**China's Overseas Computing Power Supply Chain Transitions from "Performance Realization" to "Expectation Amplification"**
China's overseas computing power supply chain is transitioning from "performance realization" to "expectation amplification" in a second wave market phase. Chinese companies, leveraging their scale manufacturing capabilities, meet overseas cloud giants' demands for high-speed optical modules and switching equipment, playing key roles in more cutting-edge network technologies (such as 1.6T/CPO/LPO) and network architectures (Scale-up/Scale-out).
Performance realization: Optical module leaders delivered high growth performance. In the first half of 2025, Eoptolink's revenue increased 282.64% year-over-year, with net profit up 355.68%; Zhongji Innolight's revenue increased 36.95% year-over-year, with net profit up 76.26%. In the data link layer field, China's ODM/JDM manufacturers produce high-speed data center switches for global top-tier brand manufacturers.
Expectation amplification: Domestic and overseas cloud vendors maintain high capital expenditure growth. According to Lightcounting forecasts, global Ethernet optical module sales for cloud data center markets will continue growing, breaking through $30 billion by 2030, with Ethernet optical modules for AI clusters approaching $20 billion in sales. Leading Chinese manufacturers are synchronized with global top-tier customers in 1.6T optical module R&D and sampling testing, actively deploying in new solutions like LPO/CPO.
**New Optical Communications Opportunities Under Scale-Up Trend**
Under the Scale-Up wave, various segments of the optical communications supply chain will exhibit cascading benefit characteristics, from optical chips/components to optical fiber cables, to equipment and system integration, with the entire industrial ecosystem welcoming new growth opportunities.
Optical chip/component level leads the explosion: Optical modules are accelerating iteration from 400G to 800G to 1.6T, with low-power LPO/LRO and highly integrated CPO also in large-scale deployment. In 2025, Alibaba Cloud deployed LPO optical modules at scale for the first time, bringing significant energy efficiency benefits; Tencent's self-developed CPO switches went online, revolutionizing the computing power era with optical interconnects; NVIDIA also released two CPO switches during GTC 2025.
Structural opportunities emerge in optical fiber cables: Multimode fiber has significant cost advantages in short-distance, high-density scenarios, with increased demand for bend-resistant, ultra-high-density multi-core cables, and MPO/MTP fiber connectors in rack wiring scenarios. Hollow-core fiber, as a disruptive innovation in transmission media, is accelerating pilot applications in intelligent computing centers. Microsoft plans to deploy 15,000 kilometers of hollow-core fiber within two years, with domestic operators also accelerating validation.
In summary, the computing power sector remains optimistic, with strong recommendations for computing power supply chain companies such as optical module industry leaders Zhongji Innolight and Eoptolink. Additionally, attention should be paid to optical device companies "one large, five small" - Accelink Technologies plus Sifoton/Tarluz/Longxi Technology/Techpolymer/Dongtiamicro. Attention should also be paid to domestic computing power supply chains, including liquid cooling segments such as Envicool and Dongyang Optics.
Risk warnings: AI development below expectations, computing power demand below expectations, market competition risks.