Serenity: Goldman Sachs Significantly Raises Unisplendour's Profitability Outlook, AI Optical Module Industry Chain Fundamentals Continue to Improve

BlockBeats News, July 18th. Analyst Serenity published an article stating that Goldman Sachs has raised its target price for InnoLight to 2581 Chinese Yuan, representing a potential upside of approximately 163.6% from the current stock price.

Serenity pointed out that, in addition to the target price, what is more noteworthy is Goldman Sachs' significant upward revision of InnoLight's earnings forecast for 2026-2028, with increases of 65%, 108%, and 119% respectively. Goldman Sachs believes that this is mainly due to the significant growth in silicon photonics module shipments, continuous expansion of AI infrastructure, price and margin improvement of 1.6T/3.2T optical modules, and the ongoing increase in AI capital expenditures.

Serenity believes that InnoLight can be seen as a crucial indicator of the prosperity of the optical communication industry chain, similar to how TSMC is to semiconductor capital expenditures. If the silicon photonics penetration rate continues to rise, it will further expand the demand for segments such as Coherent Wave (CW) lasers, SOI silicon substrates, and the ASP increase of next-generation high-speed optical modules will also benefit the entire optical communication industry chain.

Furthermore, Serenity mentioned that InnoLight had previously stated in discussions that the demand for 800G optical modules exceeded expectations, indicating that the upcoming financial performance of optical communication companies such as Applied Optoelectronics (AAOI), Lumentum (LITE), and others is also worth noting.

Serenity concluded that amid a significant industry downturn, Goldman Sachs has still substantially raised its profit forecasts, reflecting the strong fundamentals of the AI optical communication industry chain. The entire Photonics ecosystem is poised to benefit from a new round of AI infrastructure development.