Shanghai, Jan 18, 2026, 08:54 GMT+8 — Market closed.
Suzhou TFC Optical Communication Co., Ltd. shares ended Friday up 2.23% at 198.00 yuan, after trading in a range from 193.00 to 204.60 yuan. Mainland markets remain closed for the weekend, leaving investors to watch for Monday’s action in optical hardware stocks.
The jump followed a fresh surge in China’s co-packaged optics (CPO) sector, sparked by a J.P. Morgan forecast on rising Google TPU chip shipments that circulated widely in local financial circles. According to Cailianpress, the bank projects Google TPU shipments to hit 3.7 million units by 2026 and climb to 5 million in 2027.
TPUs are Google’s custom AI chips. When volumes rise, the market sees that as a sign of growing server counts and bandwidth needs. That’s exactly where CPO fits — by placing optical links closer to processors, it speeds up data transfer and reduces power consumption.
TFC outperformed the wider market on its home turf. The ChiNext Index edged down 0.2% Friday, finishing at 3,361.02, with investors cautious on growth names.
Flows indicate the AI trade is still attracting cash. According to a Sina Finance report, the ChiNext Artificial Intelligence ETF (159363) added around 12 billion yuan in net inflows over four sessions, pushing assets to a record 55.27 billion yuan by Thursday. The report also highlighted gains in optical-module leaders Zhongji Innolight and Eoptolink on Thursday, with TFC climbing late in the session. Fund manager Cao Xuchen was quoted saying a short-term pullback won’t alter the outlook for the first half, calling optical-module stocks a probable hotspot for near-term crowding.
Suzhou-based TFC, which deals in optical communication devices, also operates an advanced packaging business in optoelectronics, according to its company profile. The firm is set to release its next earnings report on April 23.
A report from Securities Times, shared by Eastmoney, noted a boost in the CPO concept on Friday afternoon, touching several stocks in Shenzhen and Shanghai. Shanxi Securities highlighted that demand for high-end optical modules might rise amid faster AI server rollouts, even as key optical chips stay in short supply.
Valuation swings cut both ways. According to MarketScreener, the stock’s market cap stands near 154 billion yuan, with a projected P/E ratio of about 68x for 2025, dropping to around 48x based on 2026 forecasts. These figures could amplify the market’s response to any hiccups in AI capex, delivery schedules, or margin pressure.
Right now, the tape tells the story: a bounce on Friday, though it came with lots of intraday volatility. Traders will be tracking if the CPO basket continues to push the same stocks higher or if money shifts once the market reopens.
Monday’s open on Jan. 19 will be crucial to see if the CPO-driven rally can sustain itself amid new headlines about AI chips and data-centre investments. With China’s year-end earnings season looming, investors will also be on the lookout for fresh sector notes and shifts in positioning.
