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Eoptolink eyes $5bn as AI data center demand surges
Chinese optical transceiver maker Eoptolink plans a Hong Kong listing that could raise up to $5bn as hyperscalers buy more 800G and 1.6T gear.
Image: TNW
While most attention in the AI boom has gone to Nvidia and model makers, one of the biggest winners is a company selling the networking hardware that keeps data centers running. Eoptolink, a Chinese maker of high-speed optical transceivers, has filed for a Hong Kong listing that could raise $4bn to $5bn, according to Bloomberg.
The company is seeking a secondary listing alongside its existing Shenzhen shares. That target is well above the $3bn figure floated in April, suggesting stronger investor demand than first expected.
Optical transceivers are a core part of AI infrastructure. They convert electrical signals into light and back again, allowing data to move between servers and chips at very high speeds. As AI clusters grow, that link matters more, especially as cloud providers adopt 800G and 1.6T modules — an area where Eoptolink specializes.
The customer list helps explain the valuation. Google, Microsoft, and Amazon all use Eoptolink’s transceivers to connect their data centers.
Revenue, profit, and share price
The AI infrastructure buildout has sharply lifted Eoptolink’s financials. The company reported 2025 revenue of about 24.8bn yuan, or roughly $3.7bn, while net profit rose 236% to around $1.4bn.
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Its Shenzhen-listed shares are up nearly 80% so far this year. The Hong Kong listing still requires approval from shareholders, China’s securities regulator, and Hong Kong’s regulator.
Hong Kong’s role in China’s AI hardware push
Eoptolink is part of a broader shift as Chinese tech companies increasingly turn to Hong Kong while US and EU barriers tighten. According to the source, Baidu’s chip unit is targeting a $50bn Hong Kong IPO, and Apple suppliers have already raised billions to retool for AI hardware.
The story also highlights a deeper contradiction: American AI infrastructure still depends in part on Chinese optical components. Unlike advanced chips, optics have largely avoided the export controls that have become a flashpoint between the US and China.
That leaves Eoptolink exposed to the same upside — and downside — as the broader AI spending cycle. Its business is tied to hyperscalers investing about $700bn a year in infrastructure. If that buildout slows, the companies supplying the plumbing will feel it too.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via TNW
