Market Reaction to the CPO‑Concept Surge
On 20 October 2025 the Shanghai Stock Exchange witnessed a pronounced rally in the domestic computing‑hardware sector, driven primarily by the CPO (chip‑processing‑optics) concept. Yuanjie Semiconductor Technology Co., Ltd. (源杰科技) participated in the rally, posting a 12 % intraday gain and ultimately reaching a 20 % limit‑price rise. The 20 % increase pushed its share price to 375 CNY, approaching the 52‑week high of 429 CNY recorded on 29 September 2025.
Key Market Moves
| Symbol | Intraday Move | Event |
|---|---|---|
| 源杰科技 | +12 % | CPO‑concept lift |
| 汇绿生态 | 20 % limit | CPO‑concept lift |
| 剑桥科技 | 20 % limit | CPO‑concept lift |
| 天孚通信 | +8 % | CPO‑concept lift |
| 中际旭创 | +6 % | CPO‑concept lift |
| 新易盛 | +5 % | CPO‑concept lift |
| 长光华芯 | +5 % | CPO‑concept lift |
The sector’s collective high opening was echoed in the semiconductor segment, where companies such as 斯兰微 (Shilan Micro) and 中科蓝讯 (Zhongke Lanyun) also recorded substantial gains.
Drivers of the Rally
1. Strength of the CPO Concept
The CPO concept, encompassing chip‑processing‑optics technologies, has attracted heightened investor interest following several industry announcements. A notable catalyst was the upgrade of the 2026 light‑module procurement plan by overseas customers, raising the target from 1.6 trillion to 2 trillion units. This increase is linked to the expanding bandwidth requirements for AI training and inference networks, particularly on the GB300 and Rubin platforms.
2. Positive Industry Sentiment
The rally coincided with favorable reports from the domestic AI chip market. On 17 October, Cambricon released its third‑quarter financial results, reporting a revenue of 1.727 billion CNY and a net profit of 567 million CNY—an increase of 1,332 % year‑on‑year. Cambricon’s performance, coupled with the successful IPO processes of other AI chip “unicorns” such as MUXI, reinforced market confidence in China’s semiconductor ecosystem.
3. Academic and Research Momentum
The week prior, several leading Chinese universities—Tsinghua, Peking, Shanghai Jiao Tong, and Fudan—published breakthrough research in top-tier journals (Nature, Nature Electronics, Nature Photonics). Advances ranged from sub‑wavelength imaging chips to high‑precision analog computing systems. The visibility of these achievements has amplified expectations for domestic chip development and potential commercial application, providing further backdrop for the CPO‑driven rally.
Company‑Specific Context
Yuanjie Semiconductor Technology Co., Ltd. operates within the Shanghai Stock Exchange’s technology sector. Its 2025 market capitalization stands at approximately 32.2 billion CNY, with a price‑to‑earnings ratio of 1,086.6, reflecting a high valuation relative to earnings. The company’s share price of 375 CNY on 16 October sits just below its 52‑week peak, suggesting a tight trading range and heightened sensitivity to sectoric momentum.
During the 20 October rally, Yuanjie’s 12 % gain brought its price close to the 20‑percent limit, indicating strong intraday demand and potential for further upside should the broader CPO trend persist. The company’s involvement in optical and processing hardware aligns well with the current market focus on high‑bandwidth, AI‑centric solutions.
Outlook
The combination of an upgraded overseas procurement schedule, positive third‑quarter results from leading AI chip firms, and a surge in academic innovation has created a favorable environment for CPO‑related stocks. While Yuanjie Semiconductor’s valuation remains high, the recent intraday performance suggests that short‑term market sentiment remains robust. Investors will likely monitor the continuation of the CPO trend, corporate earnings releases, and any further advancements in China’s semiconductor research ecosystem to gauge the sustainability of the current rally.
