"Thousand-Yuan New Aristocrat" Yuanjie Technology: Is It the New King of AI Computing Power, or Just Another Passerby?

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Will Guang Yi’s rapid rise stabilize the thousand-yuan stock price of Yuanjie Technology?

A new thousand-yuan stock has emerged in China’s A-share technology sector. On the morning of March 20, Yuanjie Technology (688498.SS) hit a strong daily limit, with a peak price of 1,140 yuan, approaching a market cap of 100 billion yuan. As of the latest report, the stock’s limit was lifted.

Yuanjie Technology’s stock price broke through 1,100 yuan, surpassing Cambrian (688256.SH), now only behind Kweichow Moutai (600519.SH), the “stock king,” 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, with an impressive monthly chart of 11 bullish and 1 bearish candles. As a core supplier of domestic EML and continuous wave lasers, Yuanjie Technology has become a dark horse in the current optical communications rally due to its deep layout in AI data center fields.

However, in the A-share market, becoming a thousand-yuan stock is both an honor and a burden — it’s never easy. After such a rapid rise, can Yuanjie Technology’s thousand-yuan stock price hold steady?

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 a stage low of 87.99 yuan in April 2025, the stock has embarked on a spectacular main upward wave. Over the following 12 months, its monthly chart showed an unusual pattern of 11 bullish and 1 bearish candles, 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 the company’s main business involves R&D, design, production, and sales of optical chips. In optical communications, its 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 with high-power CW laser chips needed for silicon photonics solutions, supplied to industry leaders like Zhongji Xuchuang and Tianfutong, playing a “seller” role 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, the 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 for 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 have reached thousand-yuan prices (post-adjustment), only to undergo long and intense corrections afterward. Whether Yuanjie Technology can hold its thousand-yuan level 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 maintains rapid growth, the current stock price already fully reflects this year’s performance and even overestimates future growth, raising questions about valuation efficiency.

Therefore, whether Yuanjie Technology can stay above 1,000 yuan depends heavily on whether its subsequent performance can continue to justify its high valuation. Although management remains confident about the prices of continuous wave lasers in 2026-2027 and emphasizes the high prosperity of the silicon photonics field, market concerns include whether product prices can remain stable amid capacity expansion and intensified competition, and whether gross margins face downward risks.

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