Sai MicroElectronics Inc

On August 27, the A-share CPO concept climbed steadily during the session. Sai MicroElectronics hit a 20-centimeter limit up, Qingshan Paper and Yangtze Optical Fibre and Cable sealed limit up, while Changxin Bochuang, Focuslight Technologies, and Kingshine Electronic rose more than 10 percent. Changyingtong, Hengtong Optic-Electric, and several other stocks also strengthened. On the news front, after the U.S. market close on August 26 Eastern Time, Nvidia reported better-than-expected earnings. Revenue for the second quarter of fiscal 2027 reached 96.2 billion dollars, up 106 percent year on year and above the market estimate of 92.38 billion dollars. Adjusted earnings per share came in at 2.22 dollars, up 120 percent year on year. Data center revenue was 89 billion dollars, also beating market expectations. On guidance, Nvidia expects third-quarter fiscal revenue to reach a midpoint of 108 billion dollars, up nearly 90 percent year on year and above the analyst estimate of 105.15 billion dollars. Adjusted gross margin is expected to be between 73.5 percent and 74.5 percent. The earnings call also revealed that Nvidia will work with Amazon Web Services to deploy an additional 2 million GPUs across AWS global infrastructure from 2027 to 2028, and expects fiscal 2028 revenue to grow about 70 percent. In addition, Nvidia announced full mass production of its Spectrum-X Ethernet photonics switching platform, marking the move of CPO solutions from technology validation to large-scale manufacturing. Overseas supply chain companies Lumentum and Coherent also disclosed shipment plans for CPO products. Several brokerages gave an optimistic outlook on China's optical communications sector, believing that investment sentiment in AI infrastructure continues to rise.

Sai MicroElectronics wholly-owned subsidiary Beijing Microchip invested 80 million yuan of its own funds in Chuxin Group, acquiring an 11.43 percent stake after the capital increase. Chuxin Group holds 100 percent of Qingdao Chuxin, which in turn holds 40 percent of Chuxin Micro and serves as its executive partner. Chuxin Micro recently became the controlling shareholder of Pianuo through a share transfer and private placement. Following this capital increase, Chuxin Group now has six shareholders, with Yin Jiayin and Beijing Microchip ranking as the top two. Together with existing shareholders Ruilian New Materials and Hanbo High-Tech, this creates a situation where three listed companies have gathered. Sai MicroElectronics stated that the move aims to leverage Chuxin Group's experience in semiconductor industry investment to identify promising projects and promote industrial synergy and resource integration.