Premier Optical Interconnect Provider Poised to Benefit From Google’s AI Compute Expansion

EverProX Technologies (300548.SZ), a comprehensive optical and electrical interconnect solution provider, stands as a core beneficiary of Google’s aggressive AI computing infrastructure expansion.

Founded as a PLC optical splitter manufacturer, EverProX has evolved into a full-service provider of integrated optical and electrical interconnect systems. The company’s product portfolio caters to telecommunications, data center, consumer, and industrial interconnect scenarios. Its telecom product lineup comprises PLC splitters, PON optical transceivers, as well as DWDM, AWG and VMUX components for backbone and metropolitan networks. For data center deployments, EverProX offers optical transceivers, active optical cables (AOCs), and direct/active/electrical copper cables (DAC/ACC/AEC), covering a full speed spectrum from 10G to 800G. The firm also supplies high-speed AOCs for consumer, industrial and medical applications, alongside chips and modular components for diverse processor interfaces. It has built a fully integrated industrial chain spanning optical fibers, core components and end-to-end system solutions.

Google’s accelerating AI commercialization drives an urgent need for massive compute capacity expansion. According to multiple industry sources cited by Cls.cn, Amin Vahdat, Head of Google Cloud AI Infrastructure, stated during an all-hands meeting on November 6 that Google must double its computing capacity every six months, targeting a 1,000-fold capability upgrade over the next four to five years. Addressing internal concerns over an AI market bubble, Google CEO Sundar Pichai emphasized that while market debates persist, the risk of underinvestment far outweighs overinvestment in the current landscape.

As a long-standing and reliable supplier of MPO fiber jumpers for Google, EverProX is well-positioned to capture substantial growth opportunities across high-speed data communication product lines. MPO fiber jumpers serve as foundational components enabling high-density optical interconnections for AI data centers. Beyond its mature MPO partnership with Google, the company has established comprehensive product coverage for 10G-to-800G AOCs and pioneered research and development in silicon photonics optical modules. Per its 2025 semi-annual report, EverProX has completed the design of silicon-photonics-based products including single-channel 400G QSFP112 modules, laying solid groundwork for penetrating the North American market with significant growth potential.

In the high-speed copper segment, EverProX has partnered with Marvell to launch the 1.6T OSFP AEC product, powered by Marvell’s Leo1 1.6T DSP retimer chip. The device supports 8×224Gbps PAM4 transmission, delivering a bit error rate (BER) lower than 1E-10 under a line-side insertion loss above 44dB, with verified transmission reach of 2.5 meters using AWG32 cables.

Earnings Forecast and Investment Thesis

As a rare comprehensive optical and electrical interconnect solution vendor, EverProX maintains a long-term stable supply partnership with Google in MPO products. Its consistent layout in optical modules, AOCs and other active optical products positions it as a key beneficiary of Google’s ongoing compute expansion, poised to drive rapid growth in its data center business.

The company is projected to generate operating revenues of RMB 3.45 billion, RMB 6.99 billion and RMB 12.02 billion from 2025 to 2027, with net profit attributable to parent shareholders reaching RMB 370 million, RMB 1.09 billion and RMB 2.04 billion respectively. Corresponding EPS stands at RMB 1.27, RMB 3.75 and RMB 6.99, with PE ratios of 128x, 43x and 23x.