The CPO concept is actively performing, and the next three years will be a key observation window.

【Global Times Finance Composite Report】At the early-session trading on April 8, shares related to the CPO concept saw active performance. As of the time of publication, Mengtong Opto-Electronics, Dongshan Precision, and Changxin Bochuang hit the daily limit. Meanwhile, ZTE Xuchuang, Huilv Ecology, Deko Li, and Changguang Huaxi were among the top gainers.

On the news front, Western Securities said that, driven by forces such as leading industry players, CPO is accelerating its commercial deployment, and the industry has already explored multiple technical route innovations such as LPO, NPO, and XPO. Currently, the industry is in the early stage of acceleration. The next three years will be the key observation window for the rapid increase in CPO industry penetration, as well as for the gradual establishment of the supply-chain landscape and the value allocation across the industrial chain.

Guotou Securities believes that optical modules are the core components of optical communication systems, performing the key function of converting optical and electrical signals. They are core components for data centers and communication networks. With AI infrastructure remaining highly upbeat, data centers have become the largest application scenario for optical modules, accounting for more than 60%. Previously, the iteration cycle of optical modules for data centers was about 3–4 years. Since 2023, driven by the surge in demand for AI computing power, the iteration cycle has shortened to around 2 years. Currently, 800G optical modules are the mainstream products for data centers globally, and 1.6T optical modules have already entered the stage of commercial deployment. As the next-generation optical interconnect core technology for AI infrastructure, CPO (co-packaged optics) offers significant advantages in performance—including power consumption, bandwidth, and latency—by integrating the optical engine with switching/computing chips in a unified package. It is an important direction for future industry development. Whether it is the demand for capacity expansion brought about by optical-module scale-up, or the technological iteration and upgrade of 800G/1.6T/CPO, both will continue to drive a high growth in demand for optical communication-related measurement instruments, and the industry’s overall business conditions will continue to rise. (Wen Hui)