Changes in Hong Kong stocks | Optical communication concepts have the highest decline, and the market is expecting large-scale implementation of CPO or postponing institutional suggestions to focus on reshaping the industrial landscape

The Zhitong Finance App learned that Optical Communications concept stocks had the highest decline. As of press release, Changfei Optical Fiber Cable (06869) fell 13.08% to HK$138.9; Junzhi Group (01300) fell 12.22% to HK$1.94; Xizhi Technology-P (01879) fell 11.4% to HK$303; Huahong Hongli (01347) fell 6.52% to HK$173.3; and Cambridge Technology (06166) fell 5.6% to HK$102.9.

In terms of news, Dylan Patel, founder of SemiAnalysis, said in an exclusive interview recently that storage has faced structural shortages for several years, and there is still 2 to 3 times more room to rise; at the same time, although intelligence and reinforcement learning have boosted CPU demand, the seller's market is overpricing this. CPU growth mainly comes from historical “reimbursements”, and its absolute value in AI servers is still far less than GPUs. Dylan believes that the large-scale implementation of co-packaged optics (CPO), which is highly anticipated by the market, has been clearly delayed until the end of 2028 to 2029, unexpectedly extending the dividend period for copper cable connectors.

According to the China Galaxy Securities Research Report, with the normalization of large-scale model training and reasoning, the construction of hyperscale data center parks has promoted a new wave of data center interconnection and the decline in the popularity of light in copper. In these scenarios, demand for low loss, high specification optical fiber and extremely high fiber count optical cable structures is growing exponentially. In this round of industrial pattern reshaping, the industry has completely bid farewell to the competitive model that relies on low prices. Leading companies that have core technology reserves, strong upstream light bar self-sufficiency, and can keep up with the development trends of the AI era and promote technological innovation may have a significant advantage in future market competition, leading the entire industry to a healthy development situation of technological upgrading and profit restoration.