On the morning of August 27, the optical communication sector emerged as the leader in A-share market gains, with Hong Kong stocks also showing strong upward momentum. The previous evening, August 26, NVIDIA unveiled its financial results for the second quarter of fiscal year 2027, revealing a remarkable revenue of $96.221 billion—a substantial 106% increase year-on-year. Notably, data center revenue constituted an impressive 92.5% of the total. Contributions from hyperscale cloud providers surpassed expectations, signaling robust demand in this segment. NVIDIA projects median revenue for the third quarter to hit $108 billion, with anticipated revenue growth of approximately 70% for fiscal year 2028, significantly outpacing market forecasts. Jensen Huang, NVIDIA’s CEO, emphasized that actual demand growth exceeds 100%, with supply constraints posing the primary challenge to further expansion. The cloud services sector boasts a backlog exceeding $2 trillion, with committed orders having doubled. Currently, Vera Rubin has commenced full-scale mass production and is anticipated to contribute 20% of data center revenue this quarter. After experiencing a seven-day consecutive decline in stock price, NVIDIA’s market sentiment took a positive turn following the earnings announcement. NVIDIA’s earnings guidance is viewed as a validation of AI computing capital expenditures, likely to prolong cloud providers’ procurement cycles and improve visibility for upstream orders, including optical modules. Moreover, the shift to GPU platforms will spur upgrades in optical modules, with CPO technology paving the way for new growth opportunities. Investment opportunities are primarily concentrated in segments closely tied to NVIDIA’s supply chain. However, given the substantial year-to-date gains in the optical communication sector, most companies now command price-to-earnings ratios exceeding 100, making high volatility a foreseeable outcome. Key factors to monitor include the production acceleration of Vera Rubin and the sales trajectory of 1.6T optical modules.