Citigroup: Predicts that the AI glasses market will reach a size of $40 billion by 2030. Keep an eye on stocks such as SUNNY OPTICAL (02382) and CONANT OPTICAL (02276).

Citi released a research report stating that artificial intelligence glasses, which are still in development, appear to be the next generation of rapidly growing artificial intelligence edge devices. The bank predicts that the shipment volume of AI glasses in 2030 will be about 112 million pairs, with a compound annual growth rate of 105% from 2024. The market size in 2030 will be $40 billion, with a compound annual growth rate of 112% during the same period. Citi predicts that the alliance between EssilorLuxottica and Meta (META.US) will maintain a leading position in the short term, with a market share of 31% in 2030, compared to 90% last year. Alphabet Inc. Class C and Apple Inc. (AAPL.US) are expected to have market shares of 27% and 16%, respectively. The bank also points out that optical components are crucial for artificial intelligence or augmented reality (AR) glasses, accounting for four to seven percent of the material list. The bank prefers companies in the supply chain with high risk exposure or a significant proportion of optical business, including EssilorLuxottica, Goertek Inc. (002241.SZ), SUNNY OPTICAL (02382), OmniVision Integrated Circuits Group, Inc. (603501.SH), and CONANT OPTICAL (02276). Citi recently initiated coverage of Conant. Citi has "buy" ratings for Sunny Optical and Conant, with target prices of HK$103 and HK$65, respectively.