Hexun Investment Advisor Guo Xuguang: What happened during the batch limit-up?

Nearly 100 stocks hit the daily limit, with half of them in the optoelectronics sector. Today, the most standout group in the A-share market is the optoelectronic packaging concept. As long as the name includes “optoelectronic,” stocks are soaring, and 20-centimeter chips are everywhere. Why is this happening? What is the underlying logic?

Guo Xuguang from Hexun Investment Advisory analyzed that, to be precise, it is a transmission solution for data centers. Compared to traditional copper cable transmission, it has significant advantages in both efficiency and cost, making it an irreplaceable solution for future data centers. In the past two years, with the explosive growth of AI, increasing demand has led many manufacturers to raise prices, and revenue has already started to reflect this. This is the fundamental logic behind the entire sector’s rise.

Of course, today’s rally is also driven by emotional factors, which established the sector’s leading position at the opening, attracting more stocks within the sector to join in, forming this batch surge. Next, let’s talk about operational aspects. Currently, there are two main issues with market hotspots: first, the lack of sustainability—due to the overall market environment, a slight rebound often leads to funds cashing out. Second, liquidity is poor; after continuous declines, many funds are trapped and unable to move. Today’s volume-constrained rebound is direct proof of this.

As these two issues are gradually resolved with short-term disturbances being digested and the market returning to normal rhythm, they will no longer be problems. Correspondingly, the key is to see who can lead the charge first—those who do will seize the opportunity. Therefore, this sector can be focused on from short to medium and long-term perspectives. It is worth paying close attention. Do you understand?