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

? Recently, optical communications and CPO (“one-year 10-bagger” stocks) have been frequently making headlines. After Yuanjie Technology and Fiberhome Optic, another target has entered this camp: Tengjing Technology. On April 3, the company’s stock price surged 19.22%. Since its April 8, 2025 low point, the stock price has already increased by 10x. At the same time, a number of individual stocks have hit new highs one after another. Optical communications and CPO are moving into a new round of major, large-scale行情.

Our longtime friend—Bian Huizong—has been closely tracking the optical communications and CPO sector for a long time. “10-bagger” stocks like Yuanjie Technology and Fiberhome Optic were cases he focused on uncovering when their share prices were still at the “foot of the mountain.” So, what opportunities are ahead for optical communications and CPO? How did Bian Huizong dig out Fiberhome Optic and Yuanjie Technology? For this, Bian Huizong has a detailed video explanation. Only by understanding the core logic and key points can you achieve a higher chance of success in finding the next leading stock.

Strong Breakout in Optical Communications and CPO

A “Backtracking” Challenger at the Center During a Volatile Market

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

In recent pullback action, optical communications and CPO have repeatedly become popular themes. Looking further at individual stock performance, the key characteristics include: stocks clustering to hit new highs/long-term slow bulls, a batch of limit-ups against the trend, main force funds aggressively adding positions, and consecutive disclosures of “10-bagger” stocks, among other things:

Individual stocks cluster to reach new highs. As of April 3, nearly 30 stocks across the A-share market hit historical highs. Optical communications and CPO concept stocks occupied many of those spots, including Gucun Technology, Qiangrui Technology, Zhili Fang, Hengtong Optic-Electric, Fiberhome Optic, Changguang Huaxi, Juguang Technology, Tengjing Technology, and Deko Li, etc.

A batch of limit-ups against the trend. On April 3, Weite Electric and Deko Li both closed with “20cm” limit-ups. A number of other stocks, including CnCera Electronics, Tongyu Communications, and Huiyuan Communications (two consecutive boards), all closed with “10cm” limit-ups.

Main force funds add aggressively to snap up shares. In the 60 trading days from December 30, 2025 to April 2, 2026, 460 stocks received net purchases from main force funds of more than 8B. Among them, 22 stocks had net buy amounts exceeding 8B. Within that, popular leaders in optical communications and CPO received key incremental buying, such as Fiberhome Optic, Hangdian Co., and Tongding Internet.

“One-year 10x-baggers” keep appearing. Since the April 8, 2025 low, Yuanjie Technology’s gain has been 1084.37%; Fiberhome Optic has risen 1062.22%. On April 3, Tengjing Technology surged by nearly 20% and hit a new high. Since April 8, 2025, it has accumulated a rise of 1002.93%.

Behind the sustained rise of the optical communications and CPO sector and popular leading stocks is the resonance of multiple factors, including long-term positive industry developments and continuous realization of fundamentals. The sector’s recent strong rally 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 technologies such as all-optical switching. Another example is the optical-fiber price increase driven by AI computing power demand: the strong, continuous rise in stocks such as Fiberhome Optic is closely related to the stimulus from rising fiber prices. According to the latest data from the industry research institution CRU, in March 2026 the spot price of China’s G.652D bare optical fiber reached RMB 83.40 per kilometer, up 165% month-on-month from January 2026 and as high as 418% year-on-year.

In addition, there are also fundamental performance realizations, such as year-over-year doubling and more of results in bulk for 2025. Yuanjie Technology successfully turned profitable, and companies including Hisense? (Chips?) (Chuangxin?—) and Intrans? (Zhongji?—) and others, such as Changxin Bochung and Jiz? (Jungji?), all saw their revenues or profits grow by multiples (see Table 2). In recent times, the stocks showing relatively strong momentum are mainly these types of high-quality performers.

Bian Huizong has long conducted research on investment opportunities in computing power, optical communications, CPO, and optical fiber. He has in-depth research into the industry chain. In the various research cases in his “Learning While Doing,” many later went on to deliver strong market rallies. For instance, the aforementioned Deko Li is a research case from May 28, 2025, and Tengjing Technology is a research case from November 10, 2025. Yuanjie Technology and Fiberhome Optic are research cases from June 18, 2025 and May 28, 2025, respectively. At the time, their stock prices were all at relatively low levels.

So, where else is there upside beyond the market for optical communications and CPO next? How did Bian Huizong prospectively uncover core leading stocks like Fiberhome Optic and Yuanjie Technology? What features allow a leading stock to evolve from a “small bull” into a “big bull”?

Detailed Analysis of the Optical Communications Industry Chain

Currently, the optical communications industry chain is expanding and extending in terms of breadth (the industry chain moving deeper horizontally toward more links), depth (the industry chain sinking further downward), and length (extending future growth potential). Many subdivided leaders and those adding capital to the optical communications industry chain are the key targets for where funds are focusing their layouts.

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 enable high-speed information transfer. It has advantages such as large communication capacity, long transmission distances, and resistance to electromagnetic interference. It is a core infrastructure of the digital economy and AI computing power. In terms of the industry chain, it can be further divided into three main segments: upstream core components, midstream equipment integration, and downstream application markets (AI data communications, telecom, etc.):

Upstream core components mainly include basic optical communications components—technology-intensive areas with accelerating domestic substitution. Examples include optical chips, electrical chips, PCB (printed circuit boards), structural components, etc. Among these, optical chips are the core value of the industry chain and have the highest technical barriers. Typical related companies include Lumentum (a U.S.-listed company whose stock price recently made repeated new highs), and domestic manufacturers such as Yuanjie Technology, Changguang Huaxi, and Shine? (Shijia? Photonics), etc.

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 the key link where value realization happens in the industry chain. Optical modules are the core interface that enables the conversion between optical signals and electrical signals. Representative companies include Jiz? (Inj? Xuchuang) and New? (New I-Sheng), etc. Currently, optical modules are developing toward higher speeds and greater integration—such as the penetration rate of 800G optical modules continuing to rise, and 1.6T optical modules entering the commercial stage.

Optical fiber cables are the transmission medium for optical signals; they are the “nervous system” of optical communications. Hollow-core fibers and others are important technical trends. Representative companies include Fiberhome Optic, Hengtong Optic-Electric, and ZTT? (Zhongtian Science and Technology), etc. Fiberhome Optic states that hollow-core fiber has characteristics such as low latency, wide transmission bandwidth, low loss, and low nonlinearity. It provides large-capacity, high-rate, low-latency, long-distance optical transmission solutions for fields such as computing power networks and AI data centers. It is a disruptive frontier product in the industry.

For the optical fiber cable track, CITIC Securities (CITIC Construction and Investment?) indicates that it expects AI-driven fiber demand to keep growing at a high rate: first, global optical module demand will still grow significantly in 2026, which will also drive fiber demand upward; second, it expects optical fiber demand from 2027’s Scaleup to start ramping up; and third, DCI will also bring a large amount of demand. Currently, the optical fiber cable industry has moved from recovery to a stage of “tight supply with both volume and price rising together.”

Recently, many companies have provided glimpses of their related layouts in the optical communications industry chain, and many of their stock prices have shown strong performance in recent days. For example, Weite Electric says its subsidiary focuses on optical communication-related products such as high-speed optical modules/arrays based on silicon photonics technology and processes; its stock price closed with a “10cm” limit-up on April 3. CnCera Electronics says its optical communications device housings’ transmission speeds have covered 2.5Gbps, 800Gbps, 1.6Tbps, and more. Its stock price also closed with a “10cm” limit-up on April 3.

Besides Weite Electric and CnCera Electronics, many other companies have also disclosed their layouts (see Table 3).

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

(Editor: Zhang Xiaobo)

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