Optical Communication Stocks Rebound Sharply: LUXNET and SPC Surge to Limit Up

Optical communication stocks are benefiting from robust and sustained demand for AI data transmission, further amplified by NVIDIA's (NVDA-US) plan to launch co-packaged optics (CPO) switches in the second half of 2026. On July 8, 2026, LUXNET (3081-TW) and SPC (3363-TW) shrugged off short-term selling pressure, opening higher and climbing throughout the session. Both stocks briefly hit their daily trading limits. LUXNET rose by NT$190, reclaiming the NT$2,000 threshold, while SPC surged past NT$600, boosted by an upgraded price target from foreign brokerages.

LUXNET reported June 2026 revenue of NT$421 million, up 3.75% month-on-month and a remarkable 128.14% year-on-year. Its cumulative revenue for January to June 2026 reached NT$2.126 billion, a 110.95% increase from the same period last year. With the ongoing market focus on optical communications and AI data centers, and supported by the mass production of its 1.6T silicon photonics products and progress in 3.2T product validation, LUXNET's fundamentals are being reinforced by record-breaking monthly revenues, attracting investor interest.

SPC is set to begin mass production and delivery of Fiber Array Units (FAUs) from the third quarter, in line with customer demand, which is expected to contribute to sustained revenue growth. Analysts anticipate that FAUs, with their higher average selling prices and gross margins, coupled with a relatively stable competitive landscape, will further enhance profitability as optical communication standards advance to faster generations like 3.2T and 6.4T.

Beyond LUXNET and SPC, the broader optical communication sector also saw gains on July 8. Fueled by long-term growth prospects in AI servers and high-speed optical transceivers, stocks including Wave Optics (3363-TW), Opto (3234-TW), TSC (6426-TW), Forward (4908-TW), and Hualight (4979-TW) all surged more than half the daily limit at one point during trading.