Optical module earnings ignite the market, rationally view the emotional fermentation of the main trend.

The optical module sector has become the strongest main theme in the current market. The leading company, New Epoch, disclosed an impressive preliminary report for the first half of 2026, forecasting a year-over-year surge of 328%-385% in net profit attributable to shareholders. Net profit in the second quarter also continued to rise sequentially, with robust performance catalyzing a collective rally in the sector.

This better-than-expected earnings report confirms the high prosperity of the computing power industry chain. Short-term sector sentiment is expected to continue heating up. However, in my view, after a short-term sentiment surge, a period of volatility and divergence is highly likely. While earnings can validate the industry trend, they cannot support an endless unilateral uptrend for the entire sector.

I do not recommend chasing the rally at this moment. A more appropriate approach is to maintain observation and patiently wait for a round of volatile pullback, allowing the short-term overheating sentiment to fully digest. At the same time, continuously track subsequent corporate earnings reports to verify whether the high prosperity can be sustained.

I will continue to monitor the changes in the prosperity of the computing power industry chain. If you're interested, you can follow me. Hot market trends fluctuate rapidly. Calmly waiting for a more cost-effective opportunity is far more prudent than impulsively following the crowd into the market.