[Zhenzhuo Hong Kong Stock Expert]曦智 (01879.HK) is the first stock in AI optical computing power with unlimited potential

$XIZHI TECH-P (01879.HK)$ It is a technology company focused on hybrid optoelectronic computing power, using 'light' technology to solve two major bottlenecks faced by traditional 'electronic' chips in the AI era: slow transmission and high energy consumption. Its two core businesses are: 1) Optical interconnection (main source of revenue): Using optical signals to connect GPUs, solving the issue of data 'not transmitting'. Its solution can reduce transmission latency between GPUs by more than 90%, significantly improving the efficiency of large model training. 2) Optical computing (second growth curve): Performing calculations directly in the optical domain, solving the issue of insufficient computing power. Its PACE series accelerator cards can be hundreds of times faster than high-end GPUs under specific algorithms while consuming extremely low power.

The core advantage of 曦智 Technology lies in its overwhelming market position in its two core businesses: Currently, in China's independent scale-up optical interconnection market, 曦智 Technology ranks first with an 88.3% market share and is the only global supplier capable of providing end-to-end integrated solutions.

This IPO has garnered support from multiple well-known investors, not only receiving subscriptions from industry giants such as Alibaba, Lenovo, and ZTE, but also having shareholders that include Tencent, Baidu, China Mobile, and Temasek among other top-tier capital entities. Additionally, the company's technical team originates from MIT, holding over 410 patents. Their products have been practically adapted for mainstream large models like DeepSeek and Kimi, and deployments at the scale of thousands of cards have been completed.

Currently, 曦智 Technology owns three self-developed underlying core technologies including: Photonic Matrix Computing (oMAC), a completely new disruptive computing principle; On-chip Optical Network (oNOC), a technology enabling efficient chiplet interconnection; and Inter-chip Optical Network (oNET), an optical scale-out/scale-up interconnection solution.

They have initiated over 15 design-in collaborations with leading global GPU manufacturers and server makers, showcasing strong technological barriers and ecosystem advantages.

Vice Chairman of the Stock Analysts Association, Pan Tieshan, pointed out that Xizhi is currently the first pure optoelectronic computing power stock in the Hong Kong market. Market consensus is that as AI computing power consumption approaches physical limits, the replacement of 'electricity' with 'light' is an inevitable trend. Xizhi Technology has positioned itself in this critical track and secured an overwhelming market position: it is the only supplier capable of providing end-to-end large-scale solutions in China's independent Scale-up optical interconnection market. Once customers adopt its solution, the cost of switching is extremely high.

Pre-IPO shareholders include Tencent, while cornerstone investors consist of a lineup of 20 top-tier institutions such as Alibaba, Singapore Government Investment Corporation (GIC), Temasek, and Blackrock, collectively subscribing to approximately 210 million US dollars.

Current estimates suggest that the group is expanding at an astonishing market growth rate, with an expected annual compound growth rate of nearly 100%, surging from 57 billion in 2025 to 1,805 billion by 2030. The company's revenue also reflects this, growing by 76.7% year-on-year to 106 million yuan in 2025. Therefore, it is recommended that investors consider subscribing. If the price after listing does not exceed 30% of the offering price, it may be considered for medium-term investment, with a stop-loss if the offering price is breached.

Pan Tieshan

Vice Chairman of the Hong Kong Stock Analysts Association (I do not hold relevant shares, but my clients do)

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