Core Viewpoint - The optical communication sector is experiencing strong momentum, driven by the acceleration of artificial intelligence and data center construction, with significant growth projected for 2025 [1] Company Performance - Credo Technology (CRDO.US) increased nearly 8% - Lumentum (LITE.US) rose 6%, reaching a new historical high - Corning (GLW.US) gained over 5% - Ciena (CIEN.US) saw a 4% increase [1] Market Growth Projections - According to Cignal AI, the optical device market revenue is expected to reach a historical high in 2025 - The revenue for the data communication segment is projected to exceed $18 billion - Optical module revenue is anticipated to approach $6 billion - From 2024 to 2029, the data communication optical module market is expected to grow at a compound annual growth rate (CAGR) of over 20%, reaching nearly $29 billion by the end of 2029 [1]

Core Viewpoint - The optical communication sector is experiencing significant momentum, driven by advancements in artificial intelligence and data center construction, leading to unprecedented growth expected by 2025 [1] Industry Summary - Optical device market revenue is projected to reach a historical high by 2025, with the data communication segment expected to exceed $18 billion and optical module revenue nearing $6 billion [1] - From 2024 to 2029, the data communication optical module market is anticipated to grow at a compound annual growth rate (CAGR) of over 20%, reaching nearly $29 billion by the end of 2029 [1] Company Summary - Credo Technology (CRDO.US) shares rose nearly 8% [1] - Lumentum (LITE.US) shares increased by 6%, reaching a new historical high [1] - Corning (GLW.US) shares gained over 5% [1] - Ciena (CIEN.US) shares rose by 4% [1]

Group 1 - The article discusses the latest edition of the "How To Invest" newsletter from Investor's Business Daily, featuring case studies of successful stocks like Walmart, Cisco Systems, and Apple, with insights from William O'Neil [1] - Kroger's stock increased following the announcement of its new CEO, former Walmart executive Greg Foran, indicating a positive market reaction to leadership changes [1] - The stock market is experiencing a rotation into consumer staples as technology stocks face sell-offs, highlighting a shift in investor sentiment [1] Group 2 - Apple and GE Aerospace are among five stocks currently showing buy signals, suggesting potential investment opportunities in these companies [1] - The article notes that Dow Jones futures have fluctuated, reflecting a divided market, with specific stocks like Apple and Boeing in buy areas [1] - There are promotional offers for IBD Digital and educational resources aimed at helping investors build effective portfolios and improve trading strategies [1]

Volatility has increased for artificial intelligence stocks in early 2026 as investors scrutinize capital spending hikes by hyperscalers Amazon.com (AMZN), Google-parent Alphabet (GOOGL) and Meta Platforms (META). While software stocks have been hammered, even Palantir Technologies (PLTR), optical networking plays Lumentum (LITE) and Ciena (CIEN) remain bright spots. Looking ahead, Nvidia's (NVDA) earnings report on Feb. 25 could bring more… ...

Group 1 - The report indicates that the overseas technology stocks have experienced significant adjustments, which may release risks and suggests a potential recovery in market sentiment before the holiday [1][6][7] - The North Exchange 50 index fell by 0.7%, with trading volume decreasing by 28.7%. The market showed considerable volatility, particularly influenced by the "Wosh trading" on Monday, leading to a notable decline [6][10] - Certain sectors such as food and beverage, beauty care, transportation, and banking performed relatively well due to their low valuation and growth rates, while the power equipment sector was more volatile due to themes related to space photovoltaic [6][10] Group 2 - The report highlights that the North Exchange's PE (TTM) average is 82.05 times, with a median of 39.37 times, indicating a decline in valuation metrics [10][12] - The trading volume for the North Exchange was 4.218 billion shares, a decrease of 29.24% week-on-week, and the total trading amount was 102.42 billion yuan, down 28.70% [10][17] - The report notes that 63 stocks rose while 224 stocks fell, resulting in a rise-to-fall ratio of 0.28, with *ST Yunchuang and Optec leading the gains [26][28] Group 3 - The report mentions that the upcoming week will see the listing of Aide Technology, with no new stocks listed this week. As of February 6, 2026, there are 292 companies listed on the North Exchange [19][39] - The report identifies specific stocks to watch due to potential mispricing from reduced risk appetite, including Liancheng CNC, Gebijia, Kaide Quartz, and others [7][26][39]

Market Overview - The market experienced a strong upward trend, with the Shanghai Composite Index rising over 1% and surpassing 4100 points, while the Shenzhen Component Index increased by over 2% and the ChiNext Index rose nearly 3% [1] - AI application stocks showed active performance, with companies like 360 and Zhongwen Online hitting the daily limit [1] - The computing power hardware sector saw explosive growth, with stocks like Jepu Tech and Changfei Fiber reaching new highs [1] - The photovoltaic sector continued its upward momentum, with stocks such as Jinjing Technology and TCL Zhonghuan also hitting the daily limit [1] - Overall, more than 4600 stocks in the Shanghai and Shenzhen markets were in the green, with a total trading volume of 2.27 trillion [1] Key Sectors Optical Communication - The optical communication sector saw significant gains, with stocks like Jepu Tech and Tiantong Co. hitting the daily limit, and Tianfu Communication rising over 17% to reach a historical high [4] - Lumentum, a leader in optical communication, reported new multi-million dollar CPO orders, contributing to a 9.4% increase in its stock price [4] - The overall market for optical interconnection is expected to maintain rapid expansion, driven by various network connection scenarios [6] Photovoltaics - The photovoltaic sector experienced another surge, with companies like GCL-Poly, Yamaton, and TCL Zhonghuan hitting the daily limit [6] - Tesla is evaluating multiple sites in the U.S. to expand its solar cell manufacturing business, aiming for an annual production capacity of 100 gigawatts over the next three years [6] AI Applications - AI application stocks surged, with companies like Mingdiao Co., Rongxin Culture, and Haikan Co. hitting the daily limit [8] - ByteDance launched the Seedance 2.0 video generation model, which supports various input types and significantly enhances video generation capabilities [8] - The introduction of Seedance 2.0 is expected to reduce production costs dramatically, making AI video generation a viable industrial tool [8][10] Notable Stocks - Jepu Tech (688025) saw a 20% increase, driven by CPO developments [15] - GCL-Poly (002506) achieved a 10.04% rise, reflecting strong market interest in photovoltaic solutions [7] - Mingdiao Co. (002830) rose by 10.02%, benefiting from advancements in AI applications [9]

Core Insights - The future of optical interconnection is driven by diverse network connection scenarios such as Scale-out, Scale-up, and Scale-across, indicating a high-speed expansion of the overall market space [1] - Various technical solutions have independent market expansion foundations, presenting long-term and sustainable development opportunities [1] - The report suggests focusing on three core lines: large optics, small optics, and new optics, based on market cycles and industry evolution stages [1] Group 1: Demand for Optical Modules - Confidence in future demand for optical modules is increasing, with major cloud service providers (CSPs) like Amazon, Google, Microsoft, and Meta disclosing a combined capital expenditure of $660 billion by 2026, a significant 60% year-on-year increase, primarily directed towards AI computing power [1] - The sustained increase in capital investment by major CSPs in AI-related infrastructure will prioritize network connectivity, crucial for computing clusters [1] - The demand for optical modules will remain strong due to the ongoing release of GPU/TPU/ASIC chips and the rapid iteration of next-generation chips, establishing a solid demand foundation for 2027 [1] Group 2: CPO Industry Progress - Lumentum has announced additional orders worth hundreds of millions of dollars for ultra-high power lasers in the CPO field, with substantial deliveries expected in the second half of 2026 and Scale-up CPO products anticipated by the end of 2027 [2] - NVIDIA has revealed that partners CoreWeave, Lambda, and TACC will deploy IBCPO systems in the first half of 2026, with Ethernet CPO products set to ship in the second half of 2026 [2] - The CPO industry is progressing faster than previously expected, with significant advancements anticipated throughout the year, suggesting a growing market space [2] Group 3: NPO's Unique Advantages - Tencent has released specifications for its NPO technology, which centralizes the optical engine deployment near device chips, enabling single-layer Scale-up networking and supporting DSP-free designs [3] - NPO offers greater flexibility and cost-effectiveness, making it a favored choice among CSP customers and potentially a long-term technical option [3] - The NPO technology can reduce costs and power consumption through high-density interconnections while maintaining higher decoupling in the supply chain, enhancing the growth potential and performance of related industry players [3]

证券研究报告·行业点评报告·通信 证券分析师 欧子兴 执业证书：S0600525110002 ouzx@dwzq.com.cn 行业走势 通信行业点评报告 当前时点如何看光模块/CPO/NPO 投资机会 2026 年 02 月 08 日 增持（维持） [Table_Tag] [Table_Summary] 投资要点 ◼ 风险提示：AI 建设不及预期、光互联技术发生重大变化、系统性风险 -18% -7% 4% 15% 26% 37% 48% 59% 70% 81% 2025/2/10 2025/6/10 2025/10/8 2026/2/5 通信 沪深300 相关研究 《我国卫星通信战略提速，建议布局 两大方向》 2026-01-11 《2026 年通信投资机会梳理：算力为 核，卫星为翼》 2026-01-04 东吴证券研究所 1 / 2 请务必阅读正文之后的免责声明部分 ◼ 光模块未来需求置信度进一步提升。本周海外亚马逊、谷歌、微软和 Meta 等主要 CSP 披露最新财报，2026 年资本开支合计将达 6600 亿美 元，同比大幅增长 60%，主要投向 AI 算力的建设。我们认为，海外主 要 CSP 大厂持 ...

Investment Rating - The report maintains an "Overweight" rating for the communication industry, indicating a positive outlook for the sector over the next six months [1][8]. Core Insights - The demand for optical modules is expected to increase significantly, driven by major cloud service providers (CSPs) like Amazon, Google, Microsoft, and Meta, which are projected to spend a total of $660 billion on capital expenditures in 2026, a 60% year-on-year increase, primarily focused on AI computing infrastructure [5]. - The CPO (Co-Packaged Optics) industry is accelerating its progress, with Lumentum announcing substantial orders for high-power lasers, and Nvidia's partners set to deploy CPO systems in 2026, indicating a robust market expansion [5]. - NPO (Near-Package Optics) technology is gaining traction due to its cost-effectiveness and flexibility, making it a preferred choice among CSP clients, which could enhance the long-term growth potential of related companies [5]. - The report emphasizes that multiple optical interconnection solutions will coexist in the long term, suggesting that investors should focus on different investment priorities based on market cycles and technological advancements [5]. Summary by Sections Optical Modules - The future demand for optical modules is expected to remain strong, with a competitive edge due to the ongoing evolution of products like 800G, 1.6T, and 3.2T modules, leading to quarterly revenue growth for related companies [5]. CPO Industry - The CPO sector is witnessing accelerated industrialization, with significant orders expected to materialize in 2026 and 2027, indicating a clear commercial value and expanding market space [5]. NPO Technology - NPO technology is recognized for its unique advantages, including cost and power efficiency, and is anticipated to become a long-term technical choice for CSPs, suggesting a strong growth trajectory for companies involved in this space [5]. Investment Focus - The report recommends focusing on three core investment themes: 1. Large-scale optical modules benefiting from high-speed interconnect demand, with key recommendations for companies like Zhongji Xuchuang and attention to new opportunities in the second-tier market [5]. 2. Smaller optical modules with increased customer demand, highlighting potential breakthroughs for companies like LianTe Technology and HuiLv Ecology [5]. 3. New optical technologies that are emerging, with a focus on companies like Tianfu Communication and potential opportunities in the technology upgrade cycle [5].

Core Insights - Lumentum Holdings Inc. experienced a significant stock increase of 40.87% week-on-week, reaching an all-time high due to its profitability in Q2 FY2026 [1][3] - The company reported a net profit of $78.2 million in Q2, a turnaround from a loss of $60.9 million in the same quarter last year, with net revenues rising by 65% to $665.5 million [3][5] - Lumentum's forward guidance indicates over 85% year-over-year revenue growth, driven by strong demand in optical circuit switches and co-packaged optics [4] Financial Performance - The net profit for Q2 FY2026 was $78.2 million, compared to a loss of $60.9 million in the same period last year [3] - Net revenues surged to $665.5 million, up from $402.2 million year-on-year, hitting the high end of previous guidance [3] - The revenue growth outlook for Q3 is projected between $780 million to $830 million, implying a growth of 83% to 95% from $425.2 million reported in the same quarter last year [5] Strategic Opportunities - Lumentum is focusing on two key areas: optical circuit switches (OCS) and co-packaged optics (CPO), with a backlog exceeding $400 million in OCS [4] - The company has received a multi-hundred-million-dollar order in CPO, expected to be delivered in the first half of 2027 [4] - The results underscore the strength of Lumentum's roadmaps for optical components and systems, positioning the company as critical to AI leaders [4]