Analysis of Why Zhongji Innolight (300308.SZ) is Popular: AI Computing Power Drive and Earnings Surge

Zhongji Innolight, as a global optical module leader, has recently become a market focus due to the AI data center construction boom and its own earnings surge [0]. In the first three quarters of 2025, the company’s revenue reached 25.005 billion yuan, a year-on-year increase of 44.43%; net profit was 7.132 billion yuan, a year-on-year increase of 90.05%, among which Q3 single-quarter net profit was 3.137 billion yuan, a year-on-year surge of 124.98% [3,6]. The continuous growth of AI computing power demand is the core driving factor; the optical communication industry is in the critical stage of technological upgrade from 800G to 1.6T, and it is expected that the Chinese AI optical module market size will reach 11.7 billion yuan in 2025 [10].

The company dominates the 800G optical module market, shipping 4.5 million units in the first half of the year with an average unit price of about 2,085 yuan, accounting for 35% of total revenue [0]; 1.6T optical modules have entered the large-scale deployment stage, starting bulk delivery in Q2, with obvious cost advantages over competitors [0]. Technically, the company’s silicon photonics technology achieves a transmission loss of less than 0.2dB, optimized by more than 30% compared to the industry average; the mass production yield of MEMS micromirror arrays reaches 95%, and it is the exclusive foundry for Google’s OCS switches [0]. In terms of customer structure, it deeply binds international key customers such as Nvidia (exclusive supplier), Google (70% share), Microsoft (50% share) [0], and the inventory balance increased from 7.35 billion yuan at the beginning of the year to 11.22 billion yuan, a growth rate of 52.64% [3]. In addition, the company is considering listing in Hong Kong to raise at least 3 billion US dollars, showing its ambition for international development [12].

1. Strong Correlation Between AI Computing Power and Optical Module Demand
   : The demand for high-speed optical modules from AI data center construction directly drives the company’s earnings growth, and technological upgrades (800G→1.6T) bring product premium space [9,11].
2. Technological Barriers Build Competitive Advantages
   : Leading positions in silicon photonics technology and MEMS micromirror arrays, as well as deep cooperation with core customers, form a strong moat [0,4].
3. Inventory Growth Reflects Order Prosperity
   : The significant increase in inventory balance is not due to unsold goods but a signal of full orders, indicating sustained revenue growth in the future [3].
4. Accelerated International Layout
   : Potential Hong Kong listing will further enhance the company’s global influence and help expand international market share [12].

• Increased Industry Competition
  : The global optical module market is highly competitive with fast technological iteration; failure to maintain technological leadership may lead to market share decline [4].
• Uncertainty of Hong Kong Listing
  : The listing process is affected by regulatory policies, market environment, etc., with certain uncertainties [12].
• Customer Concentration Risk
  : Dependence on a few key customers (such as Nvidia, Google) may affect the company’s performance if customer demand changes [0].

• Continuous Expansion of AI Market
  : Global AI computing power demand growth will drive high-speed optical module demand, and the industry boom is expected to remain high [10,11].
• Increased Penetration of 1.6T Modules
  : 1.6T optical modules are gradually becoming mainstream, and the company’s first-mover advantage is obvious, expected to capture more market share [0].
• Global Layout
  : Hong Kong listing will enhance the company’s financing capacity, supporting capacity expansion and technological R&D [12].

Zhongji Innolight has recently become a hot stock in the market relying on the surge in optical module demand driven by AI computing power, strong financial performance, leading technological advantages, and deeply bound key customer resources. The company’s Q3 net profit increased by 124.98% year-on-year, leading in 800G module shipments, 1.6T modules have been delivered in bulk, and inventory growth reflects full orders. The potential Hong Kong listing plan shows its international ambition, but attention should be paid to risks such as industry competition, technological iteration, and customer concentration. Overall, the company is in a high-boom track and has long-term growth potential [0,3,6,10,12].