Yuanjie Technology's stock price increased by nearly 800% in one year! Thanks to its IDM moat and performance reversal, it has risen to the second-highest priced stock on the A-share market.

The A-share market has seen a major breakthrough in the technology sector. Yuanjie Technology, with its strong performance, has entered the thousand-yuan stock club and become a focus in the capital market. Today during trading, the company’s stock price once surged to the 20CM daily limit, ultimately closing at 1,114.99 yuan, setting a new record and surpassing Cambrian to become the second-highest priced stock in A-shares, only behind Kweichow Moutai. This leap forward marks a significant increase in the competitiveness of domestic optical chip companies in the high-end market.

A year ago, Yuanjie Technology was struggling with performance issues. In 2023, its net profit attributable to shareholders plummeted by over 80% year-on-year, and in 2024, it turned from profit to loss, with the stock price lingering around 127 yuan for a long time. The turning point came in 2025, when global AI computing power demand exploded, and data centers’ need for high-speed optical chips surged exponentially. Leveraging core silicon photonics technology in high-power CW laser chips, the company precisely tapped into this industry trend. Its stock price increased nearly 800% in a year, rising from a hundred-yuan stock to a thousand-yuan star stock.

The key driver behind this stock price surge is Yuanjie Technology’s unique IDM full-process self-research and manufacturing model. Unlike most optical chip companies that adopt a fabless approach, the company builds its own chip design, wafer manufacturing, and processing testing systems, mastering core technologies such as epitaxial growth and grating processes. This model not only avoids supply chain risks associated with limited foundry capacity but also precisely meets the customized needs of AI data centers. Additionally, full-process control helps increase product gross margins, creating a competitive advantage that is difficult to replicate.

The performance turnaround provides a solid foundation for the stock price. According to the 2025 earnings forecast, the company expects a full-year net profit attributable to shareholders of 175 million to 205 million yuan, successfully returning to profitability. Data center business has become the main growth engine, with its revenue share continuously increasing, and product gross margins far higher than traditional telecom operations. Traditional telecom business remains stable, forming a “growth + stability” dual-driven pattern.

High industry prosperity and global tech events have become catalysts for this round of market rally. Recently, major tech conferences GTC and OFC concluded, with NVIDIA’s new generation computing architecture being implemented, effectively activating AI inference demand and boosting optical communication industry chain demand. CPO packaging optical solutions are gradually entering commercial maturity, with leading cloud service providers at home and abroad increasing investments in AIDC and AI server computing infrastructure. Authoritative institutions like LightCounting have continuously raised expectations for high-speed optical module shipments, further confirming industry prosperity.

Yuanjie Technology’s rise breaks the long-standing monopoly of A-shares’ thousand-yuan stocks by consumer and high-end manufacturing sectors. Previously, all seven thousand-yuan stocks were concentrated in fields like liquor and new energy. This breakthrough in tech stocks signifies that core AI technology has officially entered the high-end market. However, historical data shows that most thousand-yuan stocks tend to experience significant corrections after industry hype subsides. Currently, the company’s stock price is high, and future risks include intensified industry competition and accelerated technological iteration. The progress of high-end chip mass production and order fulfillment will be critical tests.