The stock price is 1,115 yuan, only behind Moutai! Yuanjie Technology, a "new star" in A-shares, has seen its market capitalization soar sevenfold in one year.

Image source: Tuchong

A new thousand-yuan star has emerged in the A-share technology sector.

On the morning of March 20, semiconductor company Yuanjie Technology (688498.SH), which focuses on optical chips, saw its stock price soar after the market opened, briefly reaching a “20cm” limit up, with an intraday high of 1140 yuan/share, successfully surpassing the thousand-yuan mark.

By the end of the trading day, Yuanjie Technology’s stock rose 17.37% to 1114.99 yuan/share, surpassing Cambrian (688256.SH; 1025 yuan/share), becoming the 8th thousand-yuan stock in A-share history and the second-highest priced stock, trailing only Guizhou Moutai (600519.SH; 1445 yuan/share).

According to Wind data, based on the closing price of the day, the stock has increased more than sevenfold in just one year, with its market capitalization skyrocketing from just over 10 billion to 95.8 billion yuan, setting a new high since its listing.

Image source: Wind

The key reason may lie in its core product entering a crucial segment of AI computing infrastructure. It is reported that Yuanjie Technology focuses on the research, design, production, and sales of optical chips, primarily applied in the telecommunications market, data center market, and automotive LIDAR market, among others.

In the field of optical communication, the main products include series of DFB and EML lasers with speeds of 2.5G, 10G, 25G, 50G, 100G, 200G, and higher rates, as well as high-power silicon optical source products of 50mW, 70mW, 100mW, 150mW, mainly used in fiber optic access, 4G/5G mobile communication networks, and data centers.

On the news front, during the GTC 2026 in March, NVIDIA CEO Jensen Huang announced the next-generation AI chip Feynman, which introduces optical communication into inter-chip connections for the first time, potentially reducing AI data center communication energy consumption by over 70%.

At the same time, the Rubin Ultra supercomputing platform and Quantum3400 CPO switch, which will go into mass production in the second half of 2026, were also announced. The latter uses deep co-packaging technology to shorten the transmission distance of electrical signals from centimeters to under 1 millimeter, reducing transmission losses by 60%, providing critical data transmission support for the Rubin platform.

This marks that the optical module CPO technology has entered the stage of large-scale deployment.

Driven by this news, the A-share CPO concept has recently experienced a collective surge, with related CPO stocks entering a rising market. Among them, Yuanjie Technology, as a core favorite in the CPO concept, has seen its stock price rise significantly, becoming the most notable star in the A-share CPO field.

Guotou Securities recently stated in a research report that with the rapid development of artificial intelligence technology, the demand for computing power to improve model performance has led to an increase in demand and capacity for optical devices. Against this background, the demand for high-speed data center markets continues to increase, with the investment trend strengthening, resulting in a surge in shipments of 400G/800G Ethernet optical modules, which in turn drives the demand for optical chips.

Additionally, the surge in Yuanjie Technology’s stock price cannot be separated from the capital’s pursuit.

Data from the market shows that from March 18 to 20, Yuanjie Technology’s cumulative increase over three trading days reached 34.3%, during which the net buying by the listed brokerage seats totaled 1.911 billion yuan. Specifically, the Shanghai Stock Connect bought 2.438 billion yuan and 798 million yuan, while selling 1.293 billion yuan and 533 million yuan.

Image source: Wind

Having seized the market opportunity brought about by the rapid growth of AI computing demand, Yuanjie Technology has also achieved a remarkable turnaround in its performance. On February 27, Yuanjie Technology disclosed its preliminary performance report for 2025, expecting a revenue of 601 million yuan, a year-on-year increase of 138.50%; the net profit attributable to shareholders is 191 million yuan, reversing a loss of 6.13 million yuan in 2024, equivalent to a growth of over 32 times.

In its performance report, Yuanjie Technology explained that “during the reporting period, against the backdrop of continuous growth in demand for optical chips driven by developments in artificial intelligence technology, the sales of the company’s CW light source products in the data center sector achieved substantial growth, while the gross profit margin of data center products was higher than that of the telecommunications market, driving the company’s revenue and profit growth.”

The previous semi-annual report for 2025 showed that Yuanjie Technology’s revenue from data center and other businesses reached 105 million yuan, accounting for about 51% of total revenue; while in 2024, its revenue from data center and other businesses was only 48.03 million yuan, accounting for about 19%.

According to a report by Kaiyuan Securities, Yuanjie Technology has achieved bulk supply to international top ten and domestic mainstream optical module manufacturers, including clients A1, Hisense Broadband, Zhongji Xuchuang, and Changxin Bochuang. The products are used by clients A, ZTE, Nokia, and other large domestic and foreign communication equipment manufacturers, and are ultimately applied in the networks of well-known domestic and foreign operators such as China Mobile, China Unicom, China Telecom, and AT&T.

On October 20, 2025, Yuanjie Technology disclosed an announcement regarding the signing of significant daily operational orders, stating that it recently received purchase orders for high-power laser chip products from Client A, with a total order amount of 63.0206 million yuan (including tax).

Just before the stock price soared, on March 6, Yuanjie Technology announced its plan to issue H shares, stating that to continuously promote the company’s international strategy and global layout, build an international capital operation platform, enhance overseas financing capabilities, and further improve the company’s capital strength and comprehensive competitiveness, it plans to issue H shares and apply for listing on the main board of the Hong Kong Stock Exchange. The company will choose an appropriate time and issuance window to complete this H-share listing within the effective period of the shareholders’ meeting resolution (i.e., within 24 months from the date of approval by the company’s shareholders’ meeting).

Regarding the significant rise in Yuanjie Technology’s stock price and the progress of its listing in Hong Kong, Times Finance sent an interview outline to Yuanjie Technology on March 20, but has not received a valid response by the time of publication.

It is worth noting that with Yuanjie Technology’s soaring stock price, discussions in the market about whether its valuation is too high have become increasingly heated.

According to Wind, as of the close on March 20, Yuanjie Technology’s price-to-earnings ratio (TTM) reached as high as 502 times. This is considered an extremely high valuation level in the A-share market, which to some extent implies that the stock price has largely overdrawn future growth potential.

In comparison, Cambrian, as another chip company, reported a revenue of 6.497 billion yuan and a net profit attributable to shareholders of 2.059 billion yuan for 2025; as of the close on March 20, its price-to-earnings ratio (TTM) was 210 times, with a market capitalization of 432.2 billion yuan, approximately 4.5 times that of Yuanjie Technology.

“The current AI field has already generated a bubble, but having a bubble does not mean it will burst immediately; the bubble may even continue to expand. Even if the bubble bursts in the future, not all companies will become worthless. Stocks that purely speculate on concepts may go to zero, but companies with true core competitiveness may even become stronger, and their market value may reach new highs,” Yang Delong pointed out, emphasizing that the outside world needs to take an objective view of this technological revolution and not simply use traditional indicators like price-to-earnings ratio and price-to-book ratio to assess whether there is a bubble or further opportunities in the industry.