By the midday break on July 20, the Communication Equipment Index had managed to edge up by 0.21%, despite experiencing a significant surge of over 4% during the morning trading session. Among the individual stocks comprising the index, Ruijie Networks stood out with a notable gain of 10.28%. Yangtze Optical Fibre and Cable followed closely, climbing 5.65%, while Eoptolink Technology and ZTE Corporation also posted solid gains of 4.10% and 3.72%, respectively. Additionally, Hengbao Co., Ltd. saw its shares rise by 3.19%. The performance of the two leading optical module companies was particularly impressive, surpassing market expectations. Eoptolink Technology is anticipated to report a net profit ranging from RMB 7 billion to 8 billion for the first half of the year, marking a substantial year-on-year increase of 77.56% to 102.93%. Similarly, TF Communication is projected to announce a net profit between RMB 1.124 billion and 1.304 billion for the same period, representing a year-on-year growth of 25% to 45%. Goldman Sachs highlighted that the surge in AI-related capital expenditures and the transition to high-speed optical modules are the primary catalysts driving this better-than-expected performance. Furthermore, with improvements in the supply of optical chips and ongoing capacity expansions, the shipment volumes of 800G and 1.6T optical modules are experiencing accelerated growth.