Investment Logic of the CPO Concept and Analysis of USI's Limit-Up

The core investment logic of the CPO (Co-Packaged Optics) concept lies in the adaptability of its technology to the AI industry. This technology packages the core components of optical modules with switching chips, significantly increasing bandwidth density and reducing power consumption, effectively solving the ultra-high bandwidth transmission bottleneck of AI servers [1]. The layout of CPO technology by industry leaders such as NVIDIA has further boosted market demand expectations [2].

USI (601231.SS)’s limit-up was directly driven by the overall surge of the CPO sector. As a semiconductor packaging and testing enterprise, USI’s advanced packaging capabilities are highly aligned with the optoelectronic hybrid packaging needs of CPO, and market expectations of its benefits from CPO have driven its stock price up [1]. From market data, on December 24, 2025, when USI hit the limit-up, its trading volume reached 66.45 million shares, doubling the average volume (31.92 million shares), indicating a significant inflow of capital [0].

1. Contradiction between technical prospects and implementation pace
   : The long-term prospects of CPO technology are recognized by the market, but it is still in the sample stage currently. Large-scale industrialization faces manufacturing and maintenance challenges, and its short-term contribution to performance is limited [1].
2. Significant sector linkage effect
   : The CPO leader Zhongji Innolight (300308.SZ) has risen more than 4 times this year, driving the sentiment of the entire sector. USI’s limit-up reflects the market’s extended attention to CPO-related packaging links [2].
3. Stock price volatility and concept speculation characteristics
   : USI has experienced multiple ups and downs in the past 8 trading days; after a 4.21% drop on December 23, it hit the limit-up the next day, indicating severe sector volatility. The current market trend is more driven by sentiment rather than performance support [0].

• Risks
  :
  • Technical Risk: There is uncertainty in the large-scale industrialization of CPO, and the technology implementation time may exceed expectations [1].
  • Valuation Risk: USI’s current price-to-earnings ratio (41.85) is at a relatively high level, and it needs to be evaluated in combination with its performance growth potential [0].
  • Sector Risk: The CPO sector has risen significantly recently, and sentiment-driven market trends are prone to corrections [1].
  • Information Uncertainty: The details of USI’s specific participation in CPO projects have not been publicly confirmed [1].
• Opportunities
  :
  • The continuous expansion of the AI industry and its demand for high-bandwidth transmission provide long-term development space for CPO technology [1].
  • Enterprises with advanced packaging capabilities may gain development opportunities in the process of CPO industrialization [1].

This analysis, based on public information compiled by social media analysts, systematically sorts out the investment logic of the CPO concept, the driving factors of USI’s limit-up, and related risks. CPO technology has attracted market attention due to its adaptation to the needs of the AI industry, and USI has benefited from the sector’s market trend through its packaging business. It should be noted that CPO is still in the early stage, with obvious concept speculation characteristics; investors should make comprehensive judgments based on the pace of technology implementation, valuation levels, and the company’s fundamentals.

[0] Jinling Analysis Database
[1] TMT Post - AI Optical Module Market Forecast and New Technology Outlook
[2] Sina Finance - AI Leader, 32 Historical Highs This Year! NVIDIA Core Suppliers Exposed