Zhongji InnoLight: The "super cycle" of the AI optical module market confirms that scale expansion architecture is the core driver (Morgan Stanley)
Morgan Stanley has significantly raised the profit forecast of Zhongji InnoLight (300308), with an increase of up to 180% in 2027, and has simultaneously raised the market size of the AI optical transceiver industry from 2026 to 2028.
Morgan Stanley has significantly raised the profit forecast of Zhongji InnoLight (300308), with an increase of up to 180% in 2027, and has simultaneously raised the market size of the AI optical transceiver industry from 2026 to 2028. The driving factor is that the demand for optical modules due to scaling architecture has far exceeded expectations. As a global leader, the company has first-mover advantages in the commercialization of 800G and 1.6T. The market may have realized the impact of AI on optical modules, but the "demand multiplier effect" brought about by scale expansion architecture may be seriously underestimated, resulting in huge room for upward adjustments in profit forecasts. One sentence conclusion: AI's demand for optical modules is not a simple "1:1" ratio, but a "compound growth" triggered by a new scale expansion architecture. Zhongji InnoLight's profit ceiling is far higher than the market imagines. Good/bad: Good for Zhongji InnoLight (300308), as well as optical module industry chain companies such as Tianfu Communications and Xinyisheng. The market has expectations for the high growth of AI optical modules in 2026, but it has underpriced the continued explosive power in 2027 and beyond. Catalysts: 1) Deployment plans of major cloud service providers (CSP) on scale expansion of network architecture; 2) Order and shipment data verification of 1.6T optical modules; 3) New technological developments such as near-package optics (CPO) as new growth points after 2027.