Laser chip, Yuanjie Technology, the second-largest high-priced stock

(Source: Dàshù’s Pattern)

Today, let’s talk about Yuánjié Technology.

This Friday, Yuánjié Technology’s stock price broke through 1,000 yuan, becoming the second high-priced A-share stock after Guizhou Moutai, surpassing Cambrian in one go.

First, let’s discuss this company. Yuánjié Technology is not just a talkative shell company; they are serious about chip R&D. Unlike others who buy parts and assemble devices, they manufacture the core “heart”—high-speed semiconductor laser chips themselves.

They operate a full-process IDM model, meaning they handle chip design, wafer fabrication, and packaging/testing all in-house, without relying on others. This model is a “moat” in the optical communications industry, with high technical barriers, which is why their gross profit margin remains high. Think about their management team—impressive credentials, with industry giants like Zhongji Xuchuang and Xiandao Optoelectronics eager to invest and endorse them. This shows their strong potential.

The logic behind Yuánjié Technology is driven by the explosive growth of AIGC (Artificial Intelligence Generated Content) and the resulting demand for computing power. Training large AI models requires astronomical data throughput, which traditional solutions can’t handle. They must adopt silicon photonics and CPO (co-packaged optics) technologies.

Yuánjié Technology has seized this wave. Their high-power CW laser chips, especially the 70mW model, are designed to solve pain points in 400G/800G optical modules and are now capable of mass production and supply.

Previously, the telecom market was considered stable but slow-growing. Now, the data center market has become a new growth engine. North American tech giants are investing heavily to compete for AI dominance—similar to the frenzy over graphics cards in the past—now it’s about hoarding optical chips.

Yuánjié’s CW laser chips are gaining recognition and gradually entering broader customer supply chains. It’s like opening a restaurant that used to serve local customers but suddenly gets recommended by Michelin Guide, attracting food lovers nationwide—business is booming. Of course, risks exist, such as overseas AI investments falling short or increased competition, but in the face of exponential growth in computing power demand, these risks are minor bumps along the way.

Now, let’s go deeper. Yuánjié Technology isn’t just selling chips; it’s selling the “shovels” in the era of computing power. No matter which large model wins or which cloud provider dominates, they all need to build infrastructure—roads and data centers—and optical chips are the “streetlights” and “traffic signals” on this information highway.

Their full-process IDM capability allows them to prioritize shipments during capacity shortages and outperform “light asset” design-only companies in cost control and iteration speed. It’s like in a gold rush—Levi’s may not make the most money selling jeans, but those who sell shovels and can mine iron ore to make shovels will be the last laughing.

Furthermore, the evolution of silicon photonics and CPO technology demands higher-quality light sources—high power and high stability are essential. Yuánjié’s years of experience in design, process, and testing form their deepest moat—others can’t copy it easily.

To put it another way, Yuánjié is like a young warrior with mastered internal skills. Once, they fought in small circles; now, the AI boom has ignited the entire martial arts world. Their high-power CW products are like the legendary sword—once fully integrated into North American giants’ supply chains, their performance growth could surpass all expectations.

As long as the story of AIGC continues and humanity’s thirst for computing power persists, companies like Yuánjié, which control core technologies, will see their value re-evaluated. So don’t just focus on short-term fluctuations—look toward 2027 and beyond, watching how they grow from a niche leader into a core asset comparable to Moutai.