In 2023, with the emergence of ChatGPT, AI and all links of its industrial chain will finally stand in the spotlight and usher in their glory moment.
The widespread use of AI applications has led to an explosive increase in the demand for computing resources, providing a rare opportunity for the construction and development of communication infrastructure.
The extremely high requirements of large models on communication capabilities and total network bandwidth make optical modules, the core components of network connections, face higher challenges in terms of single-port rate and overall number of usage. The continuous upgrade and optimization of AI clusters requires the support of a large number of optical connections.
The new computing power chip GH200 released by NVIDIA has further promoted the prosperity of the high-end optical module market due to the increase in the demand for 800G optical modules in its clusters, making optical modules the focus of the communications industry in 2023.
At present, optical modules are being upgraded to 800G/1.6T, and the demand for new products continues to grow rapidly, mainly due to the product upgrade and demand increase brought by AI.
As an important participant in the construction of global computing power, China's optical module companies have received extensive attention and expectations from overseas markets. In the future, with the release of more large-scale models with large parameters, the demand for computing power will continue to grow, which will promote the market prosperity of network communication equipment, especially high-speed optical modules.
According to LightCounting, sales of Ethernet optical modules will increase by nearly 30% in 2024. It is expected that the global optical module market will maintain growth at a compound annual growth rate of 16% in the next five years.
At present, the demand for GPUs in the entire large model market continues, and high-end optical modules connected to the AI field occupy a considerable market share. LightCounting predicts that the total sales of optical modules for AI clusters will reach $17.6 billion in the next five years
After research and review, we have also sorted out several core income potential stocks worth paying attention to in the direction of "optical modules", which are expected to take off and are worth paying attention to!
Bozhon Seiko
In terms of high-precision eutectic machine, the new product launched by the company, Xingwei EH9721, has received 400G/800G batch orders from the global leader in the industry. The company's optical module high-precision placement machine has been delivered to customers.
Tianfu Communications
The company has a laser chip integrated high-speed light engine research and development project, which is suitable for the high-speed light engine used in the CPO program, providing a one-stop integrated solution for CPO technology.
Wufang Optoelectronics
The company has carried out optical thin film panel projects, optical components for LIDAR projects, optical communication filter projects, and optical communication filter projects have been mass-produced, helping the company to enter the optical communication industry, open up new markets, and increase new revenue and profit growth points.
Yitian shares
The company's full-featured adhesive equipment can be freely matched with relevant functional modules according to needs, which is suitable for customized micron-level high-precision assembly needs. Applications: Optical chips/optical devices (laser LD strip assembly, VCSEL, PD, LENS, etc. assembly).
Special statement: The content only represents personal views and does not constitute any investment guidance, according to which you buy and sell, profit and loss at your own risk, the stock market is risky, and investment needs to be cautious!