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Ask AI · How does NVIDIA GTC promote the commercialization breakthroughs of CPO technology?

Text | Shang Yang

On March 20th, the A-share market experienced a strong performance of a structural rally, with the CPO concept, as the core of AI computing power, exploding across the board and leading the market trend. Among individual stocks, the leading company Yuanjie Technology successfully broke through the 1,000 yuan mark during trading, surpassing Cambricon to become the second-highest priced stock in A-shares.

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Stock Prices Rise Across the Board

This Friday, the market performance of the CPO concept was stunning, with the entire sector showing a broad increase (see Chart 1), with many core targets hitting new historical highs.

As the industry leader, Yuanjie Technology performed particularly strongly, quickly rising after the opening, achieving a “20CM” daily limit, successfully breaking the 1,000 yuan barrier, with a peak of 1,140 yuan per share (see Chart 2). Not only did it surpass Cambricon in one stroke, becoming the second-highest priced stock in the current A-share market, but it also became the eighth stock in A-shares history to reach 1,000 yuan (see Table 1).

Besides Yuanjie Technology, other companies in the CPO sector also performed well, such as Shineway Technology, which is deeply integrated with NVIDIA and leads the global market share of 1.6T optical modules. Its stock price hit a new historical high during the trading day. Additionally, Zhongji Xuchuang benefited from the explosion of GB200/300 orders, consolidating its position as a leader in optical modules, with its stock price rising over 6% all day. Guangku Technology and Tengjing Technology also surged significantly, forming a multi-point rally within the sector, with clear signs of capital chasing gains.

The collective surge of the CPO concept this time is not just short-term market hype, but the result of multiple factors such as technological catalysis, demand explosion, performance realization, and policy support. One of the core drivers is the technological breakthrough at NVIDIA GTC. On March 17th, during NVIDIA GTC, Jensen Huang officially announced the world’s first mass-produced Spectrum-X CPO silicon photonic switch, marking the official commercialization of electronic-to-photonic direct conversion, with the CPO commercialization schedule ahead of market expectations by 1-2 years. This technology uses CoUP packaging technology to achieve 3D co-packaging of optical devices and switching chips, increasing energy efficiency by 3.5 times and signal integrity by 63 times, perfectly meeting the bandwidth needs of large-scale AI clusters, and completely breaking through the physical limits of traditional copper cables.

Performance Realization

Performance realization and industry deployment also provide solid support for the sector’s rise. Since 2025, many listed companies in the CPO sector have experienced explosive growth in performance (see Table 2). For example, Yuanjie Technology turned losses into profits; Zhongji Xuchuang achieved a net profit attributable to shareholders of 10.799 billion yuan, a year-on-year increase of 108.81%, with orders booked through the end of 2026; SJ Photonics saw a net profit attributable to shareholders increase by over 400% year-on-year, indicating that the industry has shifted from concept hype to performance realization.

Meanwhile, the domestic CPO industry chain has achieved a leap from “following” to “leading,” with the production yield of 1.6T products exceeding 90%. On the policy level, the Ministry of Industry and Information Technology issued relevant guidelines requiring that new intelligent computing centers have no less than 60% of their CPO technology adapted, and the National Big Fund Phase III provides targeted support for the computing hardware industry chain, all of which promote rapid industry development.

Looking ahead, the long-term investment prospects of the CPO industry are broad. The industry will usher in a golden cycle of simultaneous volume and price growth, but structural differentiation will become more pronounced. In terms of market size, Yole predicts that by 2030, the CPO market will reach $8.1 billion, with a CAGR of up to 137%. LightCounting forecasts that by 2026, the global CPO market size may surpass $26 billion, growing 60% year-on-year, and the domestic market will also exceed 6 billion yuan, with a compound annual growth rate of over 70%. Regarding product iteration, 1.6T optical modules will become mainstream by 2026, and 3.2T products will begin trial production in 2027, with continuous acceleration in technological iteration.

Institutional Attention

Looking at institutional fund attitudes, the CPO sector currently enjoys high favor among institutional investors. By the end of Q3 2025, the number of institutions holding Zhongji Xuchuang and Shineway Technology in their core positions exceeded 1,800 and 1,400 respectively. Yuanjie Technology also has 264 institutions holding shares.

Since the beginning of this year, institutional activity shows that Zhongji Xuchuang, Tongfu Microelectronics, Robotech, and Tengjing Technology have all received research attention from institutions, with Zhongji Xuchuang being studied by as many as 137 institutions.

Institutions asked Zhongji Xuchuang about the pace of 1.6T volume increase in 2026 and their views on the lifecycle of NPO. The company stated that as key customers begin deploying 1.6T this year, demand is expected to grow significantly compared to last year. Orders for 1.6T increased rapidly in Q1 and are expected to continue month-on-month growth. Additionally, some customers will enter the validation stage for 1.6T this year, and it is expected that 1.6T will become a more mainstream demand for CSP customers next year. NPO, as a technical solution, offers more flexibility and cost advantages compared to CPO, such as pluggable optical engines, mature PCB packaging technology, large-scale production capacity, a more open supply chain ecosystem, and lower costs. Currently, NPO is favored and valued by CSP customers and may become a long-term technical choice.

During the research activity with Robotech, regarding the outlook on the market prospects of CPO technology and the company’s judgment on downstream demand explosion, the company said that some leading manufacturers have released official information on CPO, whether it is NVIDIA, Broadcom, or other companies, all are actively promoting this technology toward mass production. Stakeholders can continue to follow official releases from upcoming NVIDIA GTC and OFC events. As for upstream equipment, based on specific and clear demand forecasts from core customers, the company perceives a clearer picture of downstream market demand for rapid growth of CPO. As a core technology path for high-speed, high-computing scenarios, the industrialization of CPO is accelerating, and the industry has entered a critical stage from technical validation to large-scale commercialization.

(The stocks mentioned in the article are for illustrative analysis only and are not investment recommendations.)