Yuanjie Technology, stock price surged 12 times in the past year

March 19, 2026

Word count: 1,345, estimated reading time: about 3 minutes

Author | First Financial Wei Zhongyuan

Another thousand-yuan stock has emerged in the A-share technology sector. On the morning of March 20, Yuanjie Technology (688498.SS) briefly hit the daily limit-up, with a peak price of 1,140 yuan, approaching a market cap of 100 billion yuan. As of press time, the limit-up was lifted.

Yuanjie Technology’s stock price broke through 1,100 yuan, surpassing Cambrian (688256.SH), now only behind the “stock king” Kweichow Moutai (600519.SH), making it the second-highest priced stock on the two markets, and the eighth thousand-yuan stock in A-share history.

Since hitting a low of 87.99 yuan in April last year, Yuanjie Technology has gained nearly 12 times in 12 months. Its monthly chart shows 11 bullish months and 1 bearish month, with an impressive performance. As a core supplier of domestic EML and continuous wave lasers, Yuanjie Technology has become a dark horse in the current optical communication rally due to its deep layout in AI data centers.

However, in the A-share market, becoming a thousand-yuan stock is both a halo and a burden—it’s never easy to reach that level. After such a rapid rise, can Yuanjie Technology’s thousand-yuan stock price stabilize?

Positioning as an AI computing power “seller,” stock price up 12 times in a year

Yuanjie Technology’s recent surge is considered “phenomenal.” Since hitting 87.99 yuan in April 2025, the stock embarked on a spectacular main upward wave. Over the following 12 months, its monthly chart showed an unusual pattern of 11 bullish months and 1 bearish month, with a maximum increase of nearly 12 times, and a current market cap of 98 billion yuan.

The market’s frenzy for Yuanjie Technology is mainly due to its core products occupying key positions in AI computing infrastructure. Data shows that Yuanjie Technology’s main business is the R&D, design, production, and sales of optical chips. In optical communications, the company’s main products include 50G, 100G, and higher-speed DFB and EML lasers, as well as high-power silicon light sources of 50mW, 70mW, and 100mW, widely used in fiber access, 4G/5G mobile networks, and data centers.

EML lasers and continuous wave lasers are the most technically challenging core components in optical modules. Amid the rapid growth in AI computing demand, Yuanjie Technology’s data center business has seen significant growth, especially in high-power CW laser chips needed for silicon photonics solutions, which are supplied to industry leaders like Zhongji Xuchuang and Tianfutong. It plays a role akin to a “seller of shovels” in the AI boom.

Goldman Sachs, in its latest research report, pointed out that Yuanjie Technology’s data center business contribution continues to rise. As AI data centers shift from horizontal to vertical expansion, demand for optical connections surges. Compared to traditional copper cables, optical transmission offers greater bandwidth and lower loss. Notably, the company has achieved mass production of 70mW continuous wave lasers and has been validated by customers with 100mW products, gaining an early advantage in the mainstream 800G/1.6T optical module technology route.

Behind the thousand-yuan stock: performance as a “touchstone”

The “thousand-yuan curse” has long been a saying in the A-share market. Historically, stocks like Hema股份 and Stone Technology (post-adjustment) have reached the thousand-yuan mark, only to undergo long and intense corrections afterward. Whether Yuanjie Technology can hold steady at a thousand yuan has become a hotly debated topic.

The biggest controversy around Yuanjie Technology is its valuation. Currently, its price-to-earnings ratio (TTM) exceeds 513 times. This means that even if the company’s performance continues to grow rapidly, the current stock price already fully reflects this year’s earnings and even overestimates growth for the coming years, raising questions about valuation efficiency.

Therefore, whether Yuanjie Technology can stabilize above 1,000 yuan depends critically on whether its future performance can continue to digest this high valuation. Although management remains confident about the prices of continuous wave lasers in 2026-2027 and emphasizes that the silicon photonics sector remains highly active, market concerns include: can product prices stay stable amid capacity expansion and intensified competition? Is there a risk of gross margin decline?

After a continuous 12-month upward trend, market expectations for Yuanjie Technology’s earnings growth are becoming more stringent. Investors not only want to see significant year-over-year growth but also focus on whether the quarter-on-quarter growth can stay high. The most immediate test will be the upcoming Q1 earnings report. If the quarter-over-quarter growth slows down, it could trigger sharp fluctuations in valuation.