Taiwanese optics maker Advanced Optoelectronic (先進光) surged more than 7% as money poured into companies tied to co-packaged optics, a good sign for the AI hardware chain but a risky one for late buyers.

• Suppliers say demand for co-packaged optics — the technology that places optical links right next to AI chips — far outstrips what factories can produce.
• Nvidia's upcoming earnings report added fuel, lifting the whole group of CPO-linked stocks.
• Advanced Optoelectronic, best known for laptop camera lenses, is pushing into V-groove components used in fiber optic arrays and briefly hit its daily limit up.
• Profits this year look flat because of heavy spending on new equipment, but CPO work could account for 30% of sales next year, with glass-substrate drilling technology as the next bet.
• Large institutions barely touched the stock; day traders drove three-quarters of the volume, so the move could reverse quickly.

Outlook: Nvidia's results are the near-term swing factor, and a stock this driven by day traders can give back its gains just as quickly.