HK Stock Market Move | Optical communication concept stocks have seen significant gains. The supply gap in InP continues to widen. Institutions are optimistic about the long-term investment value of oversold hard technology and optical communication.

The share prices of optical communication concept stocks have risen significantly. As of the time of publication, Zhongji Innolight (03308) has increased by 17.69%, trading at HKD 1181; Cig Shanghai (06166) has risen by 11.67%, trading at HKD 80.35; CREALIGHTS (01191) has gained 11.25%, trading at HKD 90; YOFC (06869) is up 7.11%, trading at HKD 102.7; TIME INTERCON (01729) has climbed by 6.46%, trading at HKD 14.33; and Hongteng Precision (06088) has risen by 3.27%, trading at HKD 5.06. On the news front, Michael Hurlston, CEO of Lumentum, recently issued a stark warning at the RAISE Summit held in Paris: the shortage of indium phosphide (InP) will exceed the crisis currently faced by the memory market. Hurlston indicated that Lumentum currently operates five InP wafer fabs, but shipments are still over 30% below customer demand, and this gap has further widened compared to the previous quarter. Citigroup recently released a research report highlighting that the global supply-demand gap for high-speed optical chips exceeds 30%, with production capacity locked in until 2028, while capital expenditures by cloud providers continue to be revised upward, extending the industry's price increase cycle. It is worth mentioning that Lumentum's revenue for the third quarter of its fiscal year reached USD 808.4 million, a year-on-year increase of 90%. Among this, the components business generated USD 533 million in revenue, and shipments of pump lasers increased by 80% year-on-year. However, the gap between supply and demand in the market continues to widen. Industrial notes that most core AI tracks have fallen back to their bottoms in terms of congestion, and significant overselling has occurred in comparison to overseas markets over the past month. Internally, greater attention needs to be paid to leading companies in the North American computing power chain, such as optical communication.