Oil Prices, Inflation, and Rising Interest Rates: What to Do? Don't Just Stand There—Stand in the 'Light'!

"Oil prices, inflation, and bond yields"—under the triple pressure of these negative factors, Taiwan's stock market is undergoing a stress test. Looking ahead, the uptrend depends on support levels. As long as support holds, the bullish trend remains intact. The golden crossover point of monthly and quarterly moving averages is at 45,000; the MA30 and MA60 golden crossover is at 45,266—these can be seen as major future support levels. As long as support isn't broken, any pullback is just a normal bullish correction. Therefore, there's no need to fear pullbacks; the bullish structure is actually becoming more solid and clearer.

As for "what to buy during the pullback?" Jiang Jiang's loyal followers should already know! It's CPO silicon photonics! The golden era of CPO silicon photonics has begun, and the mainstream trend is firmly established. Amid this pullback in Taiwan's stock market and the temporary retreat of overvalued stocks, don't just stand there—stand in the 'light'!

Many investors see CPO silicon photonics stocks and think they've already risen too much—Is it too late to jump in now? In reality, what truly matters isn't "how much it has already risen," but rather: as AI computing power grows stronger, how will data actually be transmitted efficiently? This is the real story behind CPO.

The stronger AI becomes, the more critical light becomes! Imagine an AI data center packed with numerous GPUs. In the past, data transmission between chips could often rely on traditional electrical connections. But now, as AI models grow larger and the number of GPUs increases, data exchange speeds are exploding.

Here's the problem: computational speed is outpacing data transmission speed. What then? It's like buying a supercar but being stuck in a narrow alley—no matter how powerful the engine, it can't perform. Therefore, beyond competing in GPUs, ASICs, and advanced packaging, the next bottleneck in the AI industry is "high-speed interconnect." And optical communication is a key solution to this bottleneck. That's why investors shouldn't just focus on "AI chips"—they must also pay close attention to "light."

CPO isn't a one-day hype—it's an AI architecture upgrade

Recent market data shows that the adoption timeline for NPO and CPO on NVIDIA-related platforms is progressing steadily. NPO may enter commercialization before full CPO deployment, indicating that this supply chain isn't about to "explode overnight," but is undergoing a gradual process—from product validation and small-volume shipments to mass production. This is extremely important.

Because in stock investing, the biggest fear isn't a small theme, but a large theme that never translates into actual revenue. The key difference with the current CPO group is that some companies are already beginning to validate revenue and product progress.

Lunera (3081-TW): Upstream laser profitability breakout

Lunera is one of the more fundamentally validated companies in this optical communications group. Q2 revenue reached approximately NT$1.221 billion, a clear increase from Q1's NT$904 million. Quarterly operating profit was around NT$573 million, with net profit after tax at NT$468 million and EPS at NT$4.62—profitability showed a significant jump.

Its strength lies in indium phosphide (InP) laser epitaxy. Rising demand for AI high-speed optical modules is directly driving upstream laser demand. As NPO and CPO continue to increase demand for high-power lasers, Lunera is poised to become a key upstream supplier.

Suncore (3363-TW): Doubling down deeper into CPO

Suncore's biggest feature isn't just "optical communications," but its direct positioning in the critical FAU (Fiber Array Unit) for CPO. The company plans to invest approximately NT$1.538 billion from 2026 to Q2 2027 to expand CPO FAU production capacity. Starting in Q3 2026, it will begin delivering 3.2T+ FAU products, initially contributing minimally, but gradually scaling up as customer progress advances.

This means it's still in the "awaiting revenue scale-up" phase, but if customer validation and mass production proceed smoothly, its profit elasticity will attract market attention.

Walsin Technology (6442-TW): From optical modules to higher-end applications

Walsin's advantage lies in its comprehensive optical communication product portfolio. Its team possesses capabilities in silicon photonics component design, high-speed optoelectronic module packaging, and commercial product development.

The market also favors the growing demand for optical transceivers driven by AI data centers. Analysts believe Walsin is well-positioned to benefit from the growth of silicon photonics and high-speed optical communication markets.

Its strength isn't just the "CPO" buzzword, but its established position in the supply chain for AI high-speed transmission demand. As speed specifications upgrade, product value is likely to rise in tandem.

Po-Lo-Wang (3163-TW): Securing position in CPO Shuffle Box

Po-Lo-Wang's highlight is its layout in CPO-related Shuffle Box. The company expects significant volume ramp-up starting Q4 2026, with quarterly shipments potentially exceeding 10,000 units, accelerating further in the first half of 2027.

United Components (3450-TW): Holds technological advantages in laser packaging and high-speed optical communication products, with revenue nearly doubling year-on-year. Profit growth stems from rising demand for high-end packaging, with a niche in upgrading alongside 1.6T and 3.2T specifications.

TSMC (2330-TW): As the global foundry leader, it leads the COUPE silicon photonics heterogeneous integration platform, expected to enter mass production in 2026. Advanced packaging capacity is in high demand, providing the core chip integration technology for CPO, with very clear profit growth momentum.

Foxconn Interconnect Technology (FIT) - KY (6451-TW): Part of the Foxconn (2317-TW) group, specializing in high-end optical transceivers and CPO advanced packaging and testing. It secures orders from U.S. networking giants and Broadcom (AVGO-US). As CPO enters commercialization, packaging and testing capacity utilization will surge, offering massive profit elasticity.

Conclusion: CPO is absolutely not a fleeting hype, but a rigid demand supported by actual earnings, institutional data, and capital expenditures from global tech giants. As "customized computing" and "interconnect opticalization" advance in parallel, the optical communications industry's explosive phase has only just begun.

So, when you see Taiwan's stock market pull back again, don't shrink into a corner trembling. Understand the big industry trends, stand in the 'light,' and gradually build positions on dips. Let this wave of AI-powered ultra-fast upgrades become the strongest support for your asset growth!

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Source: Moore Investment Advisory – Analyst Kenny Chiang

The company has no improper financial interest in the securities it recommends. Past performance does not guarantee future profits. Investors should make independent judgments, exercise caution, and bear investment risks on their own.