--- title: "Chinese optical chipmaker’s profit soars 1,153% on strong AI demand" type: "News" locale: "en" url: "https://longbridge.com/en/news/284274807.md" description: "Chinese optical chipmaker Yuanjie Semiconductor Technology reported a staggering 1,153% increase in net profit for Q1, reaching 179 million yuan, driven by strong AI demand and a push for tech self-sufficiency. Revenue surged 321% to 355 million yuan. Yuanjie’s share price has increased elevenfold over the past year, closing at 1,418 yuan, making it China’s most expensive stock. The company is pursuing an IPO in Hong Kong and reflects a growing trend towards optical communication technology in data centers. Other domestic chipmakers also reported significant profit increases amid rising demand." datetime: "2026-04-27T22:02:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284274807.md) - [en](https://longbridge.com/en/news/284274807.md) - [zh-HK](https://longbridge.com/zh-HK/news/284274807.md) --- # Chinese optical chipmaker’s profit soars 1,153% on strong AI demand Chinese optical chipmaker Yuanjie Semiconductor Technology reported an elevenfold surge in first-quarter profits as domestic firms capitalise on soaring demand for computing power amid the artificial intelligence boom and the country’s tech self-sufficiency drive. Net profit in the three months ended March 31 jumped 1,153 per cent year on year to 179 million yuan (US$26.2 million), while revenue grew 321 per cent to 355 million yuan, the Shanghai-listed company said in a stock-exchange filing on Monday. Founded in 2013 and based in northwest China’s Shaanxi province, the company manufactures laser chips used in applications including AI data centres. Yuanjie attributed its strong quarterly results to a revenue increase for its continuous-wave laser products and a general rise in demand. It added that it also benefited because data centre products commanded higher gross margins. Listed in Shanghai in 2022, Yuanjie was the second company on China’s tech-focused Star Market to see its share price surpass the 1,000 yuan threshold, after AI graphics processing unit maker Cambricon Technologies. Yuanjie’s share price also increased elevenfold over the past year, closing at 1,418 yuan on Monday and topping baijiu maker Kweichow Moutai as China’s costliest stock. Yuanjie’s market capitalisation stood at 121.8 billion yuan, paling in comparison with Cambricon’s 572.1 billion yuan. The company’s rise reflects growing preference in data centres for optical communication technology over traditional copper interconnect for AI applications. Optical systems transmit data using light pulses through glass fibres instead of electrical signals through copper wires, allowing for higher bandwidth and efficiency. Yuanjie, which is pursuing an initial public offering in Hong Kong, is among a group of Chinese semiconductor firms that have been riding high amid China’s push for chip self-sufficiency. Advanced Micro-Fabrication Equipment, a maker of chipmaking equipment, said on Monday that its net profit in the first quarter jumped 197 per cent from a year earlier to 930 million yuan, while revenue grew 34 per cent to 2.92 billion yuan. The company added that it had recorded average annual revenue growth of more than 35 per cent for the past 14 years. Shares in domestic chipmakers have gained since Friday following the news that Chinese AI firm DeepSeek’s newly released flagship model could run on Chinese tech giant Huawei Technologies’ AI chips. Semiconductor Manufacturing International Corp, known as SMIC, China’s biggest chip foundry, rose 10 per cent on Friday and 6.1 per cent on Monday. 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