Benefiting from positive market sentiment, Hong Kong-listed semiconductor and optical communication stocks performed strongly. Among them, optical communication-related stocks stood out particularly. $TIME INTERCON (01729.HK)$ rose nearly 14%, $YOFC (06869.HK)$Surged over 10%. $CIG (06166.HK)$ Up more than 5%.
while semiconductor stocks also saw gains during the same period. As of press time, $SMIC (00981.HK)$ Surged over 7%, $HUA HONG SEMI (01347.HK)$ Up nearly 6%, $INNOSCIENCE (02577.HK)$ up more than 4%.
Behind the strong market performance lies a major breakthrough achieved by a research team from Shanghai Jiao Tong University in the field of next-generation optical computing chips. The team successfully developed "LightGen," a fully optical large-scale semantic generation chip, marking the first realization of an all-optical computing chip supporting large-scale semantic media generation models.
According to actual test data, even when using input devices with relatively lagging performance, LightGen still achieves two orders of magnitude improvement in computational power and energy efficiency compared to top-tier digital chips. This breakthrough stems from innovations in three key areas by the team: monolithic integration of millions of optical neurons, full-optical dimensional transformation, and an optical generative model training algorithm that does not rely on ground truth. These technological advancements make it possible to achieve fully optical end-to-end implementation for large-scale generative tasks.
Optical computing chips use photons rather than electrons for information processing, completing calculations through changes in the optical field. They possess three core advantages: ultra-high speed, ultra-low energy consumption, and high parallelism.
Industry experts point out that the development of optical computing chips is akin to the transformation brought by new energy vehicles to traditional fuel-powered cars. It represents not just simple replacement but a reconfiguration of competitive dimensions—shifting from traditional process technology competition to a new track focused on energy efficiency ratios, parallelism, and optimization for specific scenarios. This technological shift provides China with a historic opportunity to 'leapfrog' in the field of high-end AI computing chips, potentially breaking the current monopolistic landscape dominated by international giants.
in addition to these positive factors, overseas technology stocks generally strengthened, further boosting the market. As of last Friday's close, $NVIDIA (NVDA.US)$ surged 3.93%, $Broadcom (AVGO.US)$ rose 3.18%, $Advanced Micro Devices (AMD.US)$ gained 6.15%, $Micron Technology (MU.US)$ and climbed 6.99%. Notably, $Oracle (ORCL.US)$ its share price surged 6.63%, primarily driven by news that TikTok, in collaboration with Silver Lake and MGX, established a joint venture in the United States.
Institutions note sustained high demand for computing power.
A research report from Soochow Securities noted that global cloud service providers' capital expenditures continued their upward trend on a quarterly basis. In the third quarter of 2025, $Alphabet-A (GOOGL.US)$ 、 $Amazon (AMZN.US)$ 、 $Microsoft (MSFT.US)$ 、 $Meta Platforms (META.US)$ The combined capital expenditure of these four companies totaled USD 97.9 billion, marking a 10% increase from the previous quarter. Domestically, as enterprises like ByteDance approach the Token demand levels of overseas giants while computational power supply remains insufficient, there is significant room for domestic growth.
Dongxing Securities emphasized that the AI-driven logic is continuously strengthening: propelled by the vigorous development of generative artificial intelligence, the demand for computational power is growing exponentially, and the field of AI chips is witnessing diversified advancements. Against the backdrop of surging data center power requirements, it is recommended to focus on three high-quality sectors along the AI innovation cycle: semiconductor memory, semiconductor testing equipment, and magnetic components.
With breakthroughs in frontier technologies such as optical computing and the acceleration of domestic substitution, China’s semiconductor industry is poised to achieve leapfrog development in the new AI computational power sector. Capital markets’ attention to related fields will continue to rise.
Editor/KOKO