Shanghai Securities: Highlights emerge from the Optical Expo, the growth certainty of optical communication remains unchanged

According to the Zhitong Finance APP, Shanghai Securities released a research report stating that the recent Optical Expo held in Shenzhen attracted 5,000 exhibitors to showcase cutting-edge products and technologies, continuously injecting new momentum into the optoelectronic industry and downstream applications. The core focus of the optical industry lies in the industrial trend of "high-speed optical interconnection" in the data communication market. Currently, the growth logic of the optical communication sector is clear, and three major catalysts have further strengthened the industry's prosperity expectations. It is recommended to pay attention to Eoptolink (300502.SZ), Shijia Photons (688313.SH), and Quectel (603236.SH), among others.

The main viewpoints of Shanghai Securities are as follows:

Event Description

From September 10 to 12, 2025, the 26th China International Optoelectronic Expo will be grandly held in Shenzhen, with a total exhibition area exceeding 300,000 square meters, attracting 5,000 exhibitors to showcase cutting-edge products and technologies, presenting a full chain of innovative technologies from core materials and key equipment to system solutions, continuously injecting new momentum into the optoelectronic industry and downstream applications.

Highlights in Multiple Exhibition Areas, Concentrated Display of Industrial Achievements

This exhibition has planned eight major themed exhibition areas, covering information communication, precision optics, laser technology and intelligent manufacturing, infrared technology and applications, intelligent sensing, optoelectronic innovation, new display technology, and AR/VR, among others. Some key exhibition areas and highlights are as follows: 1) The information communication exhibition focuses on the forefront of the optical communication industry, showcasing key products including 400G/800G/1.6T high-speed optical modules, CPO (Co-Packaged Optics) interconnection solutions, silicon photonic chips, etc., highlighting the technological evolution in data centers and high-speed transmission fields; 2) The precision optics and camera technology exhibition area prominently displays optical components and materials, lens modules, coating equipment, machine vision systems, AR/VR optical modules, covering diverse needs in professional fields; 3) The intelligent sensing exhibition system presents innovative achievements in the sensor field, focusing on showcasing 3D vision systems, LiDAR solutions, and industrial-grade sensor products, with a dedicated interactive display area for humanoid robots, highlighting the collaborative development of intelligent equipment and sensing technology.

Industry Summit Gathers, Content Covers Multiple Core Technology Discussions

During this exhibition, a series of industry conferences will be held, focusing on cutting-edge technology clusters in communication, optics, lasers, infrared, quantum, etc. Application conferences will revolve around hot application tracks such as automotive, robotics, AR/VR, display, intelligent sensing, consumer electronics, and security. In addition, the exhibition will establish advanced photonic technology forums, Yole's optoelectronic market dynamics and industry insights, IEEE OGC2025 Light optoelectronic innovation and entrepreneurship forums, and other multi-level conference units, comprehensively covering the innovation chain of industry, academia, research, and application. Through in-depth discussions on technology routes, market trend analysis, and showcasing innovative achievements, effective promotion of cross-domain collaboration and industrial integration will be achieved.

Three Major Catalysts Enhance Industry Prosperity, Certainty of Optical Communication Growth Remains Unchanged

The firm believes that the core focus of the optical industry lies in the industrial trend of "high-speed optical interconnection" in the data communication market. Currently, the growth logic of the optical communication sector is clear, and three major catalysts have further strengthened the industry's prosperity expectations: 1) Oracle's performance is steadily improving: the company achieved revenue of $3.3 billion last quarter (up 55% year-on-year), with an unfulfilled order amount reaching $455 billion (up 359% year-on-year) The company has reached a cooperation agreement with OpenAI to jointly build a large data center in the United States with a total capacity of 4.5 gigawatts; 2) Capital expenditures of cloud vendors continue to be revised upward: In Q2 2025, the combined capital expenditure of the four major cloud vendors in North America is expected to reach USD 95.8 billion, a year-on-year increase of 64%, indicating that the industry is still in a high growth channel. Both Google and Meta have raised their full-year capital expenditure guidance, reflecting an increased investment in infrastructure driven by AI; 3) NVIDIA's long-term outlook is positive: NVIDIA stated in August that global annual spending on AI infrastructure is expected to reach USD 3-4 trillion by 2030, which the firm believes brings a certain growth outlook for underlying hardware segments such as optical communication.

Recommended Focus

CPO: Eoptolink, Zhongji Xuchuang, Tianfu Communication, Cambridge Technology, Huagong Technology;

Optical Chips: Shijia Photons, Guangxun Technology, Yuanjie Technology;

IoT Modules: Quectel, Guanghetong, Meige Intelligent;

Optical Fiber and Cables: Yangtze Optical Fibre and Cable, Hualing Cable, Yongding Co., Ltd.

Risk Warning

Weak domestic R&D technology; intensified changes in China-US trade; unclear commercial landing models for AIGC