Driven by generative AI and large language models, the cloud computing sector is experiencing new growth opportunities. On November 26, Zhongji Innolight Co., Ltd. (300308), a leading A-share optical module manufacturer, surged up to 16% intraday before closing 13.25% higher at a record price. Its market capitalization has now reached 603.58 billion yuan, ranking 13th among A-share companies.

Other optical module stocks also rallied, including SDGI Information, Yongding Co., New Sea Union Tech, Kaichuang Tech, Cambridge Technology, and TFC Optical Communication.

Alibaba Cloud revenue jumped 34% year-over-year to 39.82 billion yuan in Q2 FY2026 (ending September 30, 2025), marking consecutive nine quarters of triple-digit growth for AI-related products. While Alibaba Group's overall revenue grew 4.8% to 247.8 billion yuan, adjusted net profit plunged 72% to 10.35 billion yuan due to heavy investments in cloud and AI infrastructure. The company previously committed to investing 380 billion yuan ($53 billion) over three years in these sectors.

CEO Eddie Wu noted unprecedented demand for AI servers, with order backlogs continuing to expand. He suggested the 380-billion-yuan investment might prove insufficient given current client needs.

China's cloud computing market, valued at 828.8 billion yuan in 2024 (+34.4% YoY), is projected to exceed 3 trillion yuan by 2030, growing at over 20% annually during the 15th Five-Year Plan period. The government recently issued new cloud computing standardization guidelines targeting 30+ national/industry standards by 2027.

Among 24 cloud computing stocks receiving 10+ institutional surveys this year, Bingling Environment leads with 81 surveys for its data center cooling systems. GRG Banking (36 surveys) develops AI cloud services, while KSTAR (25 surveys) delivers major projects including Hangzhou Steel's cloud data center. Eight surveyed stocks have retreated over 30% from yearly highs, including Newcapec, Yusys Technologies, and Wanma Technology.