Optical communication and CPO are fully exploding! A new round of major market opportunity is beginning!

Ask AI · How does Bian Huizong prospectively mine 10-bagger stocks in optical communications?

By | Shui’an

‍Recently, optical communications and “CPO’s one-year 10x stocks” have been making headlines one after another. After Yuanjie Technology and Yangtze Optical Fibre (YOFC), another target has entered this camp: Tengjing Technology. On April 3, the company’s stock price surged 19.22%; since the April 8, 2025 low point, the stock price has already increased by 10 times. Meanwhile, a number of individual stocks have all hit fresh highs one after another, and optical communications and CPO are moving into a new round of large-scale行情.

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Our old friend—Bian Huizong has been tracking the optical communications and CPO sector for a long time. The “10-bagger stock” Yuanjie Technology and Yangtze Optical Fibre were cases he focused on even when their stock prices were still near the “foot of the mountain.” So, what opportunities will optical communications and CPO have next? How did Bian Huizong mine Yangtze Optical Fibre and Yuanjie Technology? In response, Bian Huizong has a detailed video explanation. Only by understanding the core logic and key points can you achieve a higher win rate in mining the next big leader.

Optical communications and CPO unleash strong momentum

A “contrarian” among the “C-position” players in volatile markets

On April 3, the market still did not change its weak trend. The index mostly closed lower, but technology stocks led by optical communications and CPO (co-packaged optics) saw a strong rebound. On the day, CPO rose 2.12%, and optical communications rose 1.64%, ranking first and second among more than 260 concept sectors, respectively.

In the recent pullback market, optical communications and CPO have repeatedly become popular themes. Looking further at individual stock performance, the key features include: individual stocks clustering to hit new highs/long-term slow bull markets, batches of limit-up moves against the trend, strong additional accumulation by main fund flows, and a continuous stream of “10-bagger stocks” being exposed, among others:

Individual stocks cluster to hit new highs. As of that day, April 3, nearly 30 stocks across the A-share market hit record highs. The optical communications and CPO concept stocks occupy many slots, such as Oplink Communications, Qiangrui Technology, Zhili Fang, Hengtong Optic-Electric, Yangtze Optical Fibre, Changguang Huaxin, Juguang Technology, Tengjing Technology, Deko Li, and others.

Batches of limit-ups against the trend. On April 3, Witten Electric and Deko Li both closed at “20cm” limit-ups. Zhongci Electronics, Tongyu Communications, Huiyuan Communications (2 consecutive limit-ups) and a number of other stocks also closed at “10cm” limit-ups.

Main fund flows intensify and chase the best entry. Among the 60 trading days from December 30, 2025 to April 2, 2026, 460 stocks received net purchases by main funds exceeding 1.6T. Among them, 22 stocks saw net purchase amounts exceeding 1 billion. Within them, popular leading stocks in optical communications and CPO received key additional share purchases, such as Yangtze Optical Fibre, Hangdian Co., Ltd., and Tongding Internet.

“One-year 10x stocks” keep appearing. Since the low point on April 8, 2025, Yuanjie Technology has risen 1084.37%, while Yangtze Optical Fibre has risen 1062.22%. On April 3, Tengjing Technology jumped nearly 20% and hit a new high in one go, with a cumulative gain of 1002.93% since April 8, 2025.

Behind the sustained rise of the optical communications and CPO sector and popular leading names are multiple factors resonating together, such as long-term favorable industry developments and the continued delivery of fundamentals. The sector’s strong rally in recent days is closely related to relevant events—for example, on April 2, the Ministry of Industry and Information Technology said it would promote the deployment of technological applications such as all-optical switching; also, the surge in optical-fiber prices driven by AI computing demand. The strong continuous rise in stock prices of Yangtze Optical Fibre and others is closely tied to the stimulus of optical-fiber price increases. According to the latest data from the industry research institute CRU, China’s spot price of G.652D unmodulated optical fiber reached RMB 83.40 per kilometer of fiber in March 2026, up 165% month-on-month from January 2026 and with a year-on-year increase as high as 418%.

In addition, there is also the fulfillment on the earnings front, such as a batch of year-2025 annual report results with doubled growth. Yuanjie Technology successfully turned losses into profits. Changxin Hobo, and Inno-RT (中际旭创) also saw growth double (see Table 2). Recently, it’s mainly these kinds of high-quality stocks with strong momentum that have been doing better.

Bian Huizong has long tracked and researched investment opportunities in computing power, optical communications, CPO, and optical fiber. He has in-depth research on the industrial chain. Many of the research cases in his book/article series 《Learn as You Do》 later went on to produce strong market trends. For example, Deko Li mentioned above was a research case dated May 28, 2025, and Tengjing Technology was a research case dated November 10, 2025. Yuanjie Technology and Yangtze Optical Fibre were research cases dated June 18, 2025 and May 28, 2025, respectively. At that time, their stock prices were all at relatively low levels.

So, where else will there be upside opportunities beyond just the beaten path for optical communications and CPO next? How did Bian Huizong prospectively mine core leading names like Yangtze Optical Fibre and Yuanjie Technology? What characteristics allow a leader stock to evolve from a “small bull stock” into a “big bull stock”?

Detailed analysis of the optical communications industry chain

At present, the optical communications industry chain is expanding and extending in terms of breadth (the industry chain going wider toward more segments), depth (the industry chain moving downward with more tier penetration), and length (extending future growth potential). Many sub-sector leading players and targets that are ramping up and expanding their positioning in the optical communications industry chain are precisely the key positioning targets for capital.

What is optical communications? Optical communications is a system that uses optical signals as the information carrier and optical fiber as the transmission medium to achieve high-speed information transfer. It has advantages such as large communication capacity, long transmission distance, and resistance to electromagnetic interference. It is a core infrastructure for digital economy and AI computing power. From the perspective of the industry chain, it can be further divided into three major segments: upstream core components, midstream equipment integration, and downstream application markets (AI data communications, telecom, etc.):

Upstream core components mainly include optical communications basic components; it’s a technology-intensive segment where localization substitution is accelerating. Such as optical chips, electrical chips, PCB (printed circuit boards), structural parts, and more. Among them, the optical chip is the core value of the industry chain and has the highest technological barriers. Typical related companies include Lumentum (a U.S.-listed company whose stock price has recently hit new highs), as well as domestic manufacturers like Yuanjie Technology, Changguang Huaxin, and Sii sjia guangzi (仕佳光子), among others.

Midstream equipment integration, such as optical modules and optical fiber & cables. The midstream integrates upstream components into optical modules, optical communications equipment, and optical fiber & cables—this is a key link for realizing industry-chain value. An optical module is the core interface that enables the bidirectional conversion between optical signals and electrical signals for data transmission. Representative companies include Inno-RT (中际旭创), and New H3C (新易盛), among others. Currently, optical modules are developing toward higher speeds and more integration. For example, the penetration rate of 800G optical modules continues to rise, and 1.6T optical modules have entered the commercial stage.

Optical fiber & cables are the transmission medium for optical signals and the “nerve and blood” of optical communications. Hollow-core fiber, etc., are important technology trends. Representative companies include Yangtze Optical Fibre, Hengtong Optic-Electric, and 中天科技 (Zhongtian Technology), among others. Yangtze Optical Fibre states that hollow-core fiber has characteristics such as low latency, wide transmission bandwidth, low loss, and low nonlinearity. It provides high-capacity, high-speed, low-latency, long-distance optical transmission solutions for fields such as computing networks and AI data centers. It is a disruptive cutting-edge industry product.

For the optical fiber & cable segment, CITIC Securities Investment Research (CITIC) says it is expected that the optical fiber demand brought by AI will continue to grow at a high rate: first, the global optical module demand will still grow significantly in 2026, and corresponding optical fiber demand will also increase accordingly; second, it is expected that the optical fiber demand from scale-up in 2027 may begin to ramp up; third, DCI will also bring a large amount of demand. At present, the optical fiber & cable industry has shifted from recovery to a “tight supply with both quantity and price rising” stage.

Recently, many companies have shared previews of their relevant positioning in the optical communications industry chain, and many of those companies’ stock prices have shown strong performance recently. For example, Witten Electric says its subsidiary focuses on optical communications-related products such as high-speed optical modules/modules based on silicon photonics technology and processes, and the company’s stock price closed at a “10cm” limit-up on April 3. Zhongci Electronics said that the transmission rate of the company’s optical communications device housings has covered 2.5Gbps, 800Gbps, 1.6Tbps and other rates. The company’s stock price also closed at a “10cm” limit-up on April 3.

Besides Witten Electric and Zhongci Electronics, multiple other companies have also shared their positioning in advance (see Table 3).

(The individual stocks mentioned in the article are only examples for analysis and do not constitute buy/sell recommendations.)