The AI track is becoming increasingly important, and global tech giants such as Nvidia, Amazon, and Google have invested huge sums of money in deepening research to take the lead in this field. Recently, the SORA model launched by OpenAI has performed amazingly in terms of generation, indicating the rapid development of AI technology.
The leap forward in AI technology is inseparable from the support of computing power, which relies on key components such as storage and optical modules. At present, CPO (photoelectric co-packaging) technology has become a mainstream application. In large model training, a server needs to connect to 8 interfaces, and each GPU needs to be configured with 3 optical modules, which requires 1:25 has increased significantly to 1:24, an increase of nearly 10 times.
As an important part of the artificial intelligence industry chain, several domestic companies have ranked among the top 10 in the world, showing strong competitiveness. For new entrants to gain a foothold in this field, they need not only long-term technology accumulation, but also multiple challenges such as customer stability and product certification, which will take at least a year. Therefore, domestic optical module manufacturers have built high competitive barriers by virtue of their deep accumulation in technology and market.
Since February 2023, the optical module (CPO) sector has continued to climb, and by June, its index has more than doubled, among which, the share prices of Zhongji Innolight, Xin Yisheng, and Tianfu Communication have all increased by 2-5 times.
However, since June, the sector has begun to correct, with a maximum** of up to 55%. However, since November, the core of the sector has stabilized, especially in the context of extreme panic in market sentiment and large indices and sectors, the important ** of the sector has remained slow.
At present, the valuations of the mainstream companies in this sector are mostly around 20 times PE. Although the valuation of the sector fluctuates greatly, with the continuous expansion of AI application scenarios, its valuation is expected to climb to 50 times PE, and its potential should not be underestimated.
Here, I have also sorted out the core leading companies of domestic "optical modules", among which the most optimistic one is extremely scarce, and it is expected to be 5 to 10 times in the future! Send a six-to-one to the blogger in an envelope, and get it for free
Zhongji Innolight
The high-power laser released by the company this time is mainly suitable for small-size pluggable external light source module (ELSFP), silicon photonics module and photoelectric co-encapsulation module (CPO).
Tianfu Communications
The company has a laser chip integrated high-speed optical engine research and development project, which is suitable for the high-speed optical engine used in the CPO program, providing a one-stop integrated solution for the CPO technology.
Kelai Electromechanical
The automated assembly and testing equipment developed by the company in the field of optical communication has been supplied to Finiar, a manufacturer of optical communication devices.
Huatian Technology
The company has mastered the optoelectronic co-packaging technology.
New Yisheng
Through the acquisition of Alpineoptoelectronics, Inc., an overseas shareholding company, it has been deeply involved in the market competition of silicon photonic modules, coherent optical modules and silicon photonic chip technology.
The last one, a business with unlimited potential
The company is a leader in the field of computing power leasing, optical modules and memory chips, and its subsidiaries have mastered the core technologies of 10G-800G optical modules and optical devices, and have self-operated data center projects. Join forces with Huawei to build a solid foundation for AI computing power.
Its ** trading is active, the market value has not exceeded 10 billion, the stock price is still at a low level, and the investment value is undervalued.
From a technical point of view, the company is showing an upward trend, the bottom is obvious, the MACD daily and weekly three-line golden cross appears, and the main capital control is high.