Goldman Sachs has released a research report reaffirming its investment stance on key optical technology players following a series of site visits across Hong Kong, Taiwan, and Suzhou. The firm maintained a "Neutral" rating on ASMPT (00522) with a price target of HK$177, while keeping a "Buy" rating on ZJ INNOLIGHT (03308) with a price target set at HK$3,267.

During the due diligence tours, Goldman Sachs engaged with multiple optical enterprises spanning optical modules, photonic integrated circuit testing and coupling equipment, fiber array units (FAU) for NPO/CPO applications, and InP epitaxial wafers/CW lasers. The visited companies included ZJ INNOLIGHT, Dongshan Precision (002384.SZ), Huagong Tech (000988.SZ), Cambridge Industries (06166), Xizhi Technology (01879), and ASMPT.

The surveyed companies maintained a positive outlook on optical module demand, anticipating benefits from the ramp-up of AI server racks, expanded application scale of optical modules, and ongoing specification upgrades. This aligns with Goldman Sachs' earlier upward revision of its demand forecasts for 800G and higher-speed optical modules for 2027 and 2028, which were raised by 39% and 36% respectively, reaching 144 million and 171 million units.

The investment bank highlighted that global demand for 800G and 1.6T optical modules could reach between 130 million and 200 million units. Meanwhile, the overall Chinese market demand is expected to register mid-teens year-on-year growth, exceeding 50 million units. However, the report cautioned that tight supply of raw materials, including DSPs, lasers, and PCBs, may continue to constrain shipment volumes in the coming year.