Shares of Chinese hardware firms Zhongji Innolight, Eoptolink, and Suzhou TFC have surged with triple-digit gains in 2025 amid rising demand for AI computing power.

Eoptolink’s shares have more than quadrupled, while Innolight and Suzhou TFC are up 235% and 166%.

The rally follows increased orders from cloud service providers and strong Q2 profits, with sector-wide earnings up 125% year-on-year, according to CSC Financial.

The firms, which produce optical transceivers for linking GPUs in data centers, count major global tech companies among their customers.

Innolight derives over half its revenue from clients including Alphabet, while Suzhou TFC supplies Nvidia. To address US tariffs, they have expanded capacity in Thailand.

Analysts warn that high valuations could slow further gains.

🔗 Source: Bloomberg