Sustained Growth Momentum for the Global Optical Module Leader

Zhongji InnoLight (300308.SZ / 03308.HK), the global leading supplier of AI data center optical modules, is poised to sustain robust growth amid the rising strategic importance of communication networks in AI infrastructure buildouts.

Leading upstream chipmakers including NVIDIA and Broadcom have reported a steadily rising revenue share from communication network chips. Consistent with prior forecasts, the global market size for AI communication network chips is projected to reach USD 107.5 billion in 2026 and USD 154.9 billion in 2027.

Optical modules have become increasingly critical to communication architectures within modern AI data centers. Based on analysis of NVIDIA’s Blackwell Ultra NVL72 system architecture, each GPU is paired with approximately 6.1 optical transceivers. In scale-out network designs, the number of network connections grows linearly with GPU and accelerator volume, following an O(N) growth rate. By contrast, scale-up networks deliver stronger connection scalability, with transceiver demand rising at an O(NlogN) rate alongside expanding accelerator deployments.

With continuous upgrades in intra-rack communication speeds and transmission distances, fiber penetration within server racks holds substantial upside potential. Driven by robust shipments of AI accelerator chips from major vendors, high-bandwidth optical modules (≥400G) for data centers are expected to reach 81.1 million units in 2026 and 146.7 million units in 2027. Among these, 1.6T optical module shipments are forecasted to hit 28.4 million and 76.3 million units respectively, emerging as the primary driver of Zhongji InnoLight’s earnings expansion.

Advancements in optical communication technology further solidify the company’s leading industry position. Co-packaged optics (CPO) is expected to achieve large-scale commercial deployment in the second half of 2027 or later, while Network Photonics (NPO) will gain mainstream traction starting in 2026, serving as a primary technical pathway for iterative interface upgrades over the near term.

Per industry estimates from Frost & Sullivan and internal research, Zhongji InnoLight secured the world’s No.1 market share of 23.1% in global data center optical module shipments for 2025. Bolstered by its first-mover advantage in 1.6T product rollouts, the company is on track to further expand its global market share in 2026, consolidating its leadership in the high-speed optical interconnect industry.