Goldman Sachs Doubles Price Target for AI Optical Module Leader Innolight

As technology giants including Nvidia rapidly expand artificial intelligence infrastructure, demand for high-speed data transmission at AI data centers is surging. Optical transceiver modules are core components of fiber-optic communications, making advances in their technology and production capacity critical to AI computing efficiency. Innolight, a global leader in optical transceivers, is seen as a bellwether supplier amid the current shortage of AI chips because of its command of cutting-edge technologies such as silicon photonics.

Goldman Sachs maintained its buy rating on Innolight in a report published in July 2026 and doubled its price target to RMB 2,581 per share. It also significantly raised its earnings forecasts for the next three years. Goldman said demand for high-speed optical communication modules used in Nvidia's next-generation AI servers was exceeding expectations. This is expected to help Innolight maintain its leading market share in high-end products including 800G and 1.6T modules, driving revenue and profit to double.