Overnight US stocks | Concept stocks of optical communications collectively strengthened, Lumentum surged. Optical communication devices are still in serious "supply shortage" status.

Concept stocks in the optical communication sector collectively strengthened. As of the time of writing, CIG (06166) rose by 7.1% to 143.6 Hong Kong dollars; TIME INTERCON (01729) rose by 6.8% to 19.8 Hong Kong dollars; YOFC (06869) rose by 6.51% to 229.2 Hong Kong dollars; and Hongteng Precision (06088) rose by 6.25% to 9.01 Hong Kong dollars. On the news front, as of the closing of the U.S. stock market on May 22nd, the overall concept of optical communication was on the rise, with Lumentum closing up over 11%. Recently, Lumentum's CEO Michael Hurlston stated that the capital expenditure of U.S. hyperscale cloud service providers is huge and shows no signs of ending, indicating that the company is increasingly falling behind in meeting demand. It is expected that within two quarters, the company's capacity by the end of 2028 will be snapped up. Lumentum expects that the OCS shipment volume compound annual growth rate (CAGR) from 2025 to 2028 will exceed 150%, aiming to achieve annual revenue of over 1 billion U.S. dollars by 2027. Credit Suisse pointed out that the current construction of hyperscale AI data centers is in urgent need of the optical interconnect and storage chip industry chain, which is in a serious "supply shortage" state. Guosheng expressed that optical modules are experiencing rapid iterations from 400G to 800G/1.6T. Each speed upgrade puts higher demands on the performance and quantity of upstream devices such as optical isolators and WDM filters, bringing broad market opportunities for communication optical components. According to LightCounting, the market size of Ethernet optical modules (100G and above) and CPO is expected to grow by 65% in 2026 compared to the previous year, surpassing 50 billion U.S. dollars by 2031.