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Citi Projects $11B OCS Market; Guang Sheng Hits Limit Up on AI Optical Hype
Electronic Technology · Electronic Components · economic_daily · 2026-10-07
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Citi's inaugural OCS market forecast predicts an $11 billion opportunity by 2030, driving shares of key supplier Guang Sheng to the daily limit.
What Happened
OCS Market Outlook: Citi has released its first market size model for Optical Circuit Switching (OCS), identifying it as a major trend in AI optics. The firm estimates the commercial OCS market could reach $11 billion by 2030, driven by backbone switching and scaling applications.
AI Server Integration: The report highlights a 1:1 ratio between OCS and AI servers, with significant growth expected by late 2028 or 2029. Increased demand for Nvidia GPUs and NVL server architectures is cited as a primary catalyst for this multi-billion dollar market expansion.
Supply Chain Impact: Analysts view Guang Sheng as a primary beneficiary due to its high revenue exposure to OCS products. As a pure-play OCS concept stock, the company is attracting significant investor attention amid the broader AI infrastructure boom.
Market Performance: Shares of Guang Sheng surged to the daily trading limit within the first half-hour of the session. The strong market reaction underscores investor optimism regarding the long-term growth potential of AI-driven optical networking components.