As OpenAI continues to launch a new generation of GPT models,Artificial intelligenceTechnology has ushered in new development opportunities. Among them, GPT-3 and Gpt-4The launch of the market has aroused widespread attention. And as these large models continue to be upgraded, the number of parameters also increases exponentially, and it is reported that gpt-4The amount of parameters is even 16 times that of GPT-3, reaching 16 trillion. This trend suggests that large models need to process larger amounts of data and need high rates to matchOptical transceivers
Optical transceiversAsOptical communicationsThe core components of the inData CentersInteriorSwitches, server vsSwitchesas well as differentData CentersThe data transfer between them all plays a vital role. They use light waves as a transmission vehicle to help the data in:Data Centersand circulation between users. With the explosive growth of global data volume,Data CentersThe number is also increasing, according to **, by 2025 worldwideData CentersThe market size will reach 5193$400 million. This will further boost the globeOptical transceiversThe market size reached 113$1.8 billion. Therefore,Optical transceiversThe industry has clear prospects and huge room for growth.
According toTransmission rateThe difference,Optical transceiversIt can be divided into medium and low rates and high rates. withArtificial intelligencewithData CentersThe increase in processing data for highTransmission rateOptical transceiversThe demand has also increased. Especially for 800g or even 16tOptical transceiversThe need is becoming more and more urgent. There are many in the countryOptical transceiversManufacturers, such as Zhongji Innolight,New Yisheng, CambridgeTechnology, Chinese workersTechnology, Yuan JieTechnologyAccelink, LianteTechnologyWait. However, it canMass production800g and 16tOptical transceiversThere aren't many of them. New Yishengis one of the few companies in the country that canMass production800g high speedOptical transceiversThe maker of the maker is in progress 16tOptical transceiversIn the customer verification stage, its product promotion speed is second only to Zhongji Innolight.
New YishengIt has achieved good performance between 2018 and 2022, with revenue from 7600 million yuan increased to 331.1 billion yuan, with a compound annual growth rate of 4447%。Net profit also increased from 03.2 billion yuan increased to 90.4 billion yuan, an increase of 2825 times. However, since 2023, the company's performance has begun to decline, and revenue in the first three quarters has fallen by 1356%, and the net profit attributable to the parent fell by 4366%。This is mainly due to weak downstream demandOptical communicationscaused by a sluggish market. However, the sluggish demand is only temporaryArtificial intelligenceRightOptical communicationsThe demand of the market is gradually being released, especially for 800g 16tOptical transceiversDemand will grow significantly in 2024, when the company's performance will also improve.
In addition to the production of 800g and 16t high speedOptical transceiversoutside,New YishengIt is also ahead of other companies in terms of LPO technology. LPO (Linear Drive PluggableOptical transceiversis a kind with traditionOptical transceiversCompared with packaging technologies with the advantages of low power consumption, low cost, low latency, and easy maintenance. It is expected that in the next few years, the LPOOptical transceiversIt will show a high growth momentum, and shipments are expected to increase from 1310,000 pieces will increase to 4.18 million pieces in 2028, with a compound annual growth rate of 217%. and LPO at a rate of 800G and aboveOptical transceiversThe share of shipments will also increase from 3% to 19% over the same period. Hence the LPOOptical transceiversIt is expected to become a key area for manufacturers to compete.
Despite the globalOptical transceiversAmong the manufacturers, foreign leaders such as MACOM and Arista have already released related products, and Nvidia plans to start in 2024Mass productionlpoOptical transceivers, CambridgeTechnologyNew Yisheng, Zhongji Innolight, HuagongTechnology, Shijia Photonics and other domestic companies have also been deploying LPOsOptical transceivers, but most companies are still in the R&D or testing stageNew YishengIt has successfully launched 800G based on LPO schemeOptical transceiversand ahead of other companies in LPO technology, will be the first to benefit from the dividends of industry expansion.
New YishengIt is highly concerned by the market, not only because of its high production speedOptical transceiversalso because of its leading LPO technology. The company is confident in the growth of future performance and has released a new round ofEquity incentivesplan, and set a revenue target for 2024 to 2026. Currently,New YishengSubject to include pensionsof 214 institutionsPosition
In summary,New YishengIt is the leading high-speed in ChinaOptical transceiversOne of the producers, benefiting from:Artificial intelligencedrivenOptical transceiversDemand growth, although short-term performance is under pressure, but once downstream demand picks up, the company's performance is expected to improve. In addition,New Yisheng's LPO technology is ahead of the rest of the industry and has also supported its growth. Therefore, the company has strong growth and certainty in the future.