Shares of optical communication companies are trading higher in Hong Kong, with CREALIGHTS (01191) climbing 7.72% to HK$133.9, CIG (06166) advancing 7.4% to HK$117.5, YOFC (06869) rising 3.98% to HK$180.1, and ZJ INNOLIGHT (03308) gaining 1.94% to HK$1106.

The recent call by major US AI firms to "slow down" had sparked concerns over potential easing in AI-related spending. In response, President Trump and NVIDIA CEO Jensen Huang have both come out in support of accelerating AI development. Huang argued that AI safety does not require special legislation, asserting that existing market mechanisms are sufficient, and dismissed AI doomsday theories as unscientific attention-seeking.

Citigroup's report indicates that worries about a slowdown in AI spending have become clearly exaggerated. The bank believes that sustained growth in AI inference demand, coupled with ongoing supply-side tightness, will support further expansion of capital expenditure across the entire ecosystem.

At the 27th Optoelectronics Expo, industry interest was even higher than in previous years, according to a research note from CICC. "Locking in orders" and "securing materials" emerged as key themes from the exhibition surveys, further solidifying demand visibility for 2027. The research also revealed that some high-speed optical chip manufacturers have already scheduled orders extending into 2028 and beyond, with optical module order visibility covering 2027 and later years.

Earlier, Goldman Sachs raised its demand forecasts for 800G and higher optical modules for 2027 and 2028 by 39% and 36% respectively, reaching 144 million units and 171 million units.