Core Viewpoint - The article discusses the current state of the A-share market, particularly focusing on AI computing power concept stocks, referred to as "Yi Zhongtian" and "Ji Lianhai," and raises the question of whether these stocks are overvalued or undervalued amidst their significant price increases [3][5]. Group 1: Market Trends - The rapid development of AI is expected to increase the demand for optical modules and drive upgrades towards higher transmission rates [9][10]. - The competition in AI computing power not only relies on GPU capabilities but also on data transmission efficiency, where optical modules play a crucial role [11][12]. - The market demand for optical modules continues to grow, and the speed of their iteration is accelerating [14][22]. Group 2: Performance Metrics - The main optical module companies, represented by "Yi Zhongtian," have shown significant revenue growth, with New Yisheng, Zhongji Xuchuang, and Tianfu Communication reporting increases of 282.64%, 36.95%, and 57.84% in revenue respectively for the first half of 2025 [20]. - The sales volume of optical modules for Zhongji Xuchuang and New Yisheng increased by 45.96% and 112.53% year-on-year in the first half of 2025 [28]. - Major cloud service providers are significantly increasing their capital expenditures, with a projected 50% growth in combined capital spending expected for 2025 [30][31]. Group 3: Valuation Insights - Analysts have incorporated the anticipated growth from 1.6T optical modules and increased capital expenditures into their 2026 performance forecasts, predicting net profits for Zhongji Xuchuang, New Yisheng, and Tianfu Communication to grow by 45.98%, 47.17%, and 37.05% respectively [38]. - The dynamic price-to-earnings ratios for these companies are projected to be 34.71, 30.66, and 48.04, suggesting a reasonable valuation range of 30-40 times earnings in the current market environment [39][40]. - The article suggests that the valuation of "Yi Zhongtian" stocks may not fully reflect the potential liquidity premium from the current market conditions [45]. Group 4: Investment Strategies - For investors already holding "Yi Zhongtian" stocks, a strategy of locking in profits through gradual selling is recommended, with specific profit-taking thresholds set [51][52]. - New investors are advised to wait for a significant price correction before entering the market, as chasing high-flying stocks can lead to losses [58][60]. - The article emphasizes the importance of having a clear understanding of the industry and company fundamentals before making investment decisions, particularly in a volatile market [57][62].

Core Viewpoint - The article discusses the recent surge in A-share stocks related to AI computing power, particularly focusing on the "Yi Zhong Tian" stocks, which have seen significant price increases, raising concerns about potential bubbles in the market [2][5][45]. Group 1: Industry Trends - The rapid development of AI is expected to increase the demand for optical modules, which are crucial for data transmission efficiency [6][10]. - The competition in AI computing power is not only about GPU capabilities but also about the efficiency of data transmission, highlighting the importance of optical modules [8][9]. - The market for 800G and 1.6T optical modules is projected to grow significantly, with the overall market size expected to exceed $22 billion by 2030 [15][16]. Group 2: Company Performance - Companies like Xinyi Sheng, Zhongji Xuchuang, and Tianfu Communication have reported substantial revenue growth in the first half of 2025, with Xinyi Sheng's revenue increasing by 282.64% year-on-year [14]. - The sales volume of optical modules for Zhongji Xuchuang and Xinyi Sheng also saw significant increases, with year-on-year growth rates of 45.96% and 112.53%, respectively [21]. - The introduction of 800G optical modules has positively impacted the financial performance of these companies, with increased revenue and profit margins [13][15]. Group 3: Valuation Insights - Analysts have adjusted their ratings for several optical module stocks, with Xinyi Sheng and Tianfu Communication downgraded to "reduce" due to high valuations [5][30]. - The expected net profits for 2026 for Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication are projected to grow by 45.98%, 47.17%, and 37.05%, respectively [30]. - The current market environment suggests that a price-to-earnings ratio of 30-40 times is reasonable for these stocks, with potential for higher valuations if market liquidity improves [33][35]. Group 4: Investment Strategies - For investors already holding these high-performing stocks, a strategy of locking in profits through gradual selling is recommended [38][40]. - New investors are advised to wait for significant price corrections before entering the market, as chasing high prices can lead to losses [42][44]. - The article emphasizes the importance of understanding industry trends and company fundamentals before making investment decisions, rather than reacting to market movements [42][43].