Goldman Sachs and JPMorgan Bet Big on Zhongji Xuchuang's AI Optical Interconnects

Wall Street institutions Goldman Sachs and JPMorgan have significantly increased their stakes in Zhongji Xuchuang's H-shares, a leading AI optical interconnect company listed on the Hong Kong Stock Exchange. As of August 3 and July 31, respectively, their long positions rose to 12.19% and 13.72%, more than doubling from previous figures of 5.95% and 5.60%. This bullish sentiment is reflected in Goldman Sachs' sharp increase in target price for Zhongji Xuchuang's A-shares from RMB 1,187 to RMB 2,581.

The company has seen its share price rise by over 17% since listing on July 30 at HK$980 per share, closing at HK$1,151 on August 6. This surge is attributed to growing demand for high-speed optical interconnects driven by AI computing power and investment in AI infrastructure.

Goldman Sachs believes Zhongji Xuchuang will benefit from the expansion cycle of AI data centers, citing its product portfolio spanning 800G and 1.6T solutions, scalable delivery capabilities, and extensive global customer base.