Guotai Junan Securities: High-speed optical module sales increase, optimistic about core testing equipment.

A research report from China Galaxy Securities pointed out that AI-driven optical modules are accelerating iteration, and 800G/1.6T optical modules are experiencing rapid volume growth. Recently, the global leader in optical communication devices, Lumentum, stated that with high demand in data centers, the company's existing capacity is unable to meet the demand, and it is expected that by the next two quarters, the 2028 capacity will be fully sold out. The high-speed optical modules are driving the growth in demand for testing instruments, and factors such as AI infrastructure and the iteration and upgrade of optical modules are important driving forces. In recent years, domestic testing instrument manufacturers have been continuously developing self-developed high-end instruments and solutions, while also improving their business matrix through external mergers and acquisitions. They are expected to fully benefit from the incremental market space brought by AI and the opportunities for localization.