The CPO (Co-Packaged Optics) concept stocks soared again today. In the first hour of trading, the sector recorded approximately 110 billion yuan in turnover, with nearly all stocks in the sector rising. The sector index surged over 5%, hitting a new high. Among the top performers, Tianfu Communication briefly hit the 20% daily limit, while Dongtianwei and Yuanjie Technology rose over 10%. Changguang Huaxin, Shijia Photonics, Zhongji Innolight, and Yongding Co. also climbed more than 7%, all reaching record highs.
Analysts attribute the rally to two key factors: First, as the annual report season approaches, the earnings visibility of the computing power sector has attracted early capital inflows. Second, recent positive developments in AI computing, such as Amazon’s launch of Trainium3—a 3nm-based chip offering 4x performance and 40% better efficiency than its predecessor—have dispelled concerns about an AI bubble.
**Market Frenzy** The CPO sector saw explosive demand in early trading, with 17 stocks hitting the daily limit or gaining over 10%. Trading volume exceeded 110 billion yuan in just one hour, reflecting strong investor interest.
Globally, AI advancements continue to drive optimism. Domestically, DeepSeek V3.2’s release showcased reasoning capabilities comparable to GPT-5, while ByteDance’s Doubao team partnered with ZTE to launch an AI-powered smartphone prototype. Overseas, Amazon’s Trainium3 and AMD’s approval to export AI chips to China further fueled sector momentum.
CITIC Securities noted that recent catalysts—including Google’s model upgrades, DeepSeek’s breakthroughs, and strong market debuts like Moore Threads—underscore AI’s long-term potential. The firm emphasized that the AI revolution’s impact could rival the Industrial Revolution, warranting a long-term investment perspective.
**Earnings Preview?** With the创业板 (ChiNext) entering its annual report pre-disclosure window, attention turns to earnings growth. The computing power sector stands out: Dongtianwei’s Q1-Q3 net profit surged 99.2%, Zhongji Innolight rose 90%, and Shenghong Technology skyrocketed 324%. Companies expecting significant annual profit swings must issue forecasts by January 31.
Leading stocks like Xianhe Capital and Sungrow Power also posted solid Q3 results, hinting at potential earnings surprises.
Looking ahead, Huaan Securities predicts booming demand for high-end PCBs and CPO components, with domestic PCB makers poised to benefit from their 50% global market share. The firm also expects local AI chips to surpass foreign rivals by 2026, creating substitution opportunities.