Hundred-billion giant hits the daily limit! Policy favorable news combined with NVIDIA partnership sparks CPO concept. Multiple stocks were actively bought by funds against the market last week.

On the morning of February 9, “Yi Zhongtian” drove the CPO concept to continue its surge, with Tianfu Communication hitting the 20cm limit-up, setting a new historical high with a market value surpassing 230 billion yuan. New Easy盛 rose over 8%, Zhongji Xuchuang increased 5%; Changfei Fiber Optic strongly hit the limit-up, with its total market value rising to 159.2 billion yuan; Jepte, Guangku Technology, and Tiantong Shares also hit the limit-up, while Juguang Technology, Hengdong Optical, Tacheng Optical, Deke Li, Robote, and Shijia Photonics all saw significant gains.

The sector’s movement is not only due to short-term overselling but also related to the Ministry of Industry and Information Technology’s major policy document and new collaborations with tech giants like NVIDIA.

Ministry of Industry and Information Technology Promotes the Construction of a National Computing Power Interconnection and Interoperability Node System

On February 6, the Ministry of Industry and Information Technology issued the “Notice on the Construction of National Computing Power Interconnection and Interoperability Nodes,” aiming to build computing power interconnection nodes in key national hubs, strategic regions, and industries, forming a national node system for computing power interconnection and interoperability.

The “Notice” states that the national node system will use a unified platform and operational mechanism to standardize and facilitate the efficient flow and application of computing resources across different regions, entities, and architectures. Nodes will be supported by a comprehensive service platform, including systems for national computing internet services, computing power identification management, resource aggregation, selection, security monitoring, and safety assurance, enabling cross-regional management. Construction will prioritize regions with high computing demand and key industries, implementing a “unified identification” mechanism to obtain unique codes via national nodes, integrating resources into the network and market. Core system development and unified interfaces will ensure interconnectivity.

The Ministry indicated that moving forward, efforts will accelerate the development of national computing power nodes, promote high-quality growth of the industry, and support the development of a strong manufacturing nation, a cyber power, and a digital China.

A recent research report from China Galaxy Securities highlights that this policy is significant for China’s computing industry, especially during the rapid expansion phase of computing capacity, emphasizing resource utilization integration and reinforcement, as well as further regulation of domestic computing power development based on previous policies.

Looking ahead, China Galaxy Securities believes that, based on the vigorous development during the “14th Five-Year Plan,” this notice provides a clearer direction for the “15th Five-Year Plan” period. In the first year of the “15th Five-Year Plan,” infrastructure for computing power remains a key focus area.

Tower Semiconductor Collaborates with NVIDIA to Develop 1.6T Silicon Photonics Modules

Semiconductor foundry Tower Semiconductor recently announced that it is expanding AI infrastructure deployment through high-performance silicon photonics technology, aiming to support 1.6T data center optical modules compatible with NVIDIA network protocols.

It is reported that Tower’s silicon photonics technology can deliver twice the data rate of previous solutions, providing higher bandwidth and throughput for optical interconnects, thereby enhancing AI application performance on AI infrastructure.

“AI’s exponential growth has driven demand for new high-speed, scalable networks to connect AI infrastructure,” said Gilad Shainer, Senior Vice President of NVIDIA’s Networking Business. “NVIDIA is collaborating with Tower Semiconductor to advance the ecosystem, deploying more efficient AI infrastructure through next-generation silicon photonics, and accelerating large-scale AI applications.”

Photonics market and technology analysts note that the collaboration between Tower and NVIDIA signals a strong indication that data center interconnectivity is entering the next growth phase. The rapid expansion of AI clusters has made the efficiency of data movement between GPUs, switches, and racks a limiting factor.

Funding Investors Snatch Up Multiple Concept Stocks Last Week

According to Eastmoney’s concept sector data, currently, 45 A-share stocks are involved in the CPO concept, with a total market value exceeding 3.2 trillion yuan. The “Yi Zhongtian” trio and Lixun Precision, Changfei Fiber Optic lead in size.

Since the beginning of the year, the performance of CPO concept stocks has been somewhat mixed. Some, like Chuan Technology, doubled in value, while others such as Robote, Juguang Technology, and Changfei Fiber Optic gained over 50%. Conversely, Zhongji Xuchuang, New Easy盛, Lixun Precision, and Jingwang Electronics saw declines.

Last week, after a large surge on Tuesday, the CPO sector continued to decline, with a weekly drop of 1.63%. Nonetheless, many concept stocks still attracted leveraged funds.

Data from Eastmoney’s Choice shows that last week, 16 CPO concept stocks received net financing inflows, with six exceeding 100 million yuan. Zhongji Xuchuang was the most favored, with a net financing of 437 million yuan, while Hengtong Optoelectronics and Juguang Technology were also heavily bought, with 414 million and 317 million yuan respectively. Jepte’s net financing reached 256 million yuan.

Eastmoney Illustration·Key Insights

(Article source: Eastmoney Research Center)