China's three largest optical module makers lost more than 13% in A-share trading on July 30, extending a sector rout tied to AI infrastructure demand concerns. Zhongji Innolight's Hong Kong shares fell 7.5% in their trading debut, as the AI selloff weighed on the data center supply chain.
The coordinated selloff erased more than 13% from China's three largest optical module makers on July 30, as AI infrastructure demand concerns spread from Hong Kong to the A-share market.
EOPTOLINK, one of the three affected companies, said in a stock exchange filing that its production and operating activities are progressing in an orderly manner and no material changes have emerged in its operating environment. The company said there are no undisclosed matters that should be disclosed.
EOPTOLINK (300502.SZ) fell 9.4%, TFC (300394.SZ) dropped 9.8% and Zhongji Innolight (300308.SZ) declined 6.2% in Shenzhen trading. In Hong Kong, Zhongji Innolight's H-shares (03308.HK) debuted at HKD980 and slid to HKD906.5, with turnover reaching HKD7.8 billion.
The rout threatens to deepen losses for investors who piled into optical module stocks during the AI boom. The companies, which make high-speed transceivers essential for data center connectivity, had been among the best-performing tech names in China, with Zhongji Innolight's Shenzhen shares more than tripling over the past two years before this week's selloff.
The selloff in optical module stocks mirrors a broader rotation out of AI-exposed hardware names globally. Zhongji Innolight's $6.8 billion Hong Kong listing, one of the largest tech IPOs of the year, was expected to test investor appetite for AI infrastructure plays after a prolonged rally. The stock's weak debut suggests institutional demand may be cooling after months of aggressive positioning in data center supply chain stocks.
EOPTOLINK and TFC, both based in Shenzhen, derive the bulk of their revenue from 400G and 800G optical transceivers used in hyperscale data centers. Any slowdown in AI-related capital expenditure by major cloud providers would directly impact their order books. The three companies count Nvidia, Microsoft and Amazon's AWS among their end customers through tier-one networking equipment suppliers.
This article is for informational purposes only and does not constitute investment advice.
