CPO Concept Surges Amid AI Boom — 13 A-Share Stocks Forecast Over 60% Net Profit Growth

Q: CPO Concept Surges Amid AI Boom — 13 A-Share Stocks Forecast Over 60% Net Profit Growth

A single technology quietly powering the AI revolution has sent 13 Chinese stocks into overdrive—three of them rocketing up more than 300% in a year—yet almost no one outside a tiny circle of engineers saw it coming. While investors chased flashy AI model startups, these unassuming firms mastering Co-Packaged Optics quietly became the backbone of next-gen data centers. The real shock? This explosive growth isn’t based on speculation—it’s already showing up in hard profit numbers, with one company’s earnings exploding by 425% last year. And the most surprising part isn’t even the growth rate—it’s *which* companies are winning… because they’re not the names you’d expect. So who actually builds the hidden infrastructure letting AI giants train trillion-parameter models? And why have analysts been so quiet about it?

Title: CPO Concept Surges Amid AI Boom — 13 A-Share Stocks Forecast Over 60% Net Profit Growth
By Arvin | January 30, 2026

Amid a volatile session in China’s equity markets, the CPO (Co-Packaged Optics) concept bucked the trend with a strong rally on the morning of January 30, 2026. The sector surged 3.50%, emerging as one of the top-performing thematic indices on the A-share market. This surge reflects growing investor confidence in the long-term structural tailwinds driven by artificial intelligence (AI), data center expansion, and next-generation optical interconnect technologies.

Why CPO? The AI-Driven Inflection Point

As AI large language models continue to scale exponentially—both in parameter count and computational intensity—the demand for ultra-high-bandwidth, low-latency, and energy-efficient data transmission within data centers has skyrocketed. Traditional pluggable optical modules are increasingly constrained by signal loss, power inefficiency, and physical space limitations over short-reach, high-frequency links.

CPO technology addresses these bottlenecks by co-packaging the switch ASIC (application-specific integrated circuit) and optical engine in a single package. This integration drastically shortens the electrical path between components, reducing latency, power consumption, and signal degradation—critical advantages for AI/ML clusters and hyperscale cloud infrastructure.

According to Cignal AI, the datacom optical module market is projected to exceed $18 billion in 2025, with coherent modules alone reaching nearly $6 billion. By 2029, the market for 400G+ optical modules could approach $30 billion, positioning CPO as a cornerstone of next-gen optical networking.

Strong Earnings Visibility: 13 CPO-Linked Stocks Forecast >60% Profit Growth

Per East Money Choice data, as of November 29, 2025, 21 A-share companies classified under the CPO concept have released 2025 annual earnings guidance. Impressively, 17 firms (over 80%) expect year-over-year net profit growth, with 13 forecasting increases exceeding 60%.

Here are standout performers:

【仕佳光子 – Sifotonics – 688313.SH – Optical Chips & Components】
Expected 2025 net profit: RMB 341.5 million (+425.95% YoY).
Driver: Surging demand from AI-driven datacom markets; strong client adoption of its AWG (arrayed waveguide grating) chips and fiber components.
【长芯博创 – Accelink Technologies – 300548.SZ – Optical Communication】
Expected 2025 net profit: RMB 320–370 million (+344% to +413% YoY).
Driver: Robust sales of high-speed transceivers fueled by cloud computing and AI infrastructure build-outs.
【杰普特 – JPT Opto-electronics – 688025.SH – Laser & Photonics】
Expected 2025 net profit: RMB 262–309 million (+97.69% to +132.88% YoY).
Driver: Rapid growth in both lithium battery precision laser processing and optical communication modules.

Other notable gainers in the CPO rally include:

【天孚通信 – TFC Opto-Electronics – 300394.SZ – Optical Components】 (+12%)
【炬光科技 – Focuslight Technologies – 688167.SH – Photonics】 (>10%)
【联特科技 – Linktel Technologies – 301205.SZ – Optical Modules】 (>10%)
【长飞光纤 – Yangtze Optical Fiber – 601869.SH – Fiber Optics】 (limit-up at +10%)
【亨通光电 – Hengtong Optic-Electric – 600487.SH – Telecom & Optical Cable】 (>7%)

Strategic Implications for Global Investors

For international investors focused on China A-shares and H-shares, the CPO theme offers a rare confluence of technological leadership, earnings visibility, and policy tailwinds. The Chinese government continues to prioritize semiconductor self-sufficiency and digital infrastructure—key enablers for domestic CPO supply chains.

While most pure-play CPO firms trade on the Shanghai or Shenzhen exchanges, global investors can access them via:

Stock Connect programs (Northbound trading)
QFII/RQFII channels
Thematic ETFs tracking advanced manufacturing or AI infrastructure

Note: None of the core CPO players listed above currently have H-share dual listings, so direct exposure remains primarily through A-shares.

Risks to Monitor

Despite the bullish momentum, investors should remain mindful of:

Valuation premiums: Many CPO stocks trade at elevated forward P/E multiples.
Technology transition risk: CPO adoption timelines may vary across hyperscalers.
Geopolitical friction: Export controls on advanced photonics could impact supply chains.

Final Thoughts

The CPO rally isn’t just speculative—it’s backed by real earnings acceleration and structural demand from AI. As data centers evolve from “compute-centric” to “interconnect-centric” architectures, companies enabling this shift stand to benefit for years to come.

For overseas investors seeking exposure to China’s tech renaissance beyond consumer internet names, the CPO ecosystem represents a compelling frontier—one where innovation meets profitability.

— Arvin
Global Markets Analyst | Focused on China Equities & Tech Themes

Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investing in A/H shares involves risks including currency fluctuations and regulatory changes.