Core Viewpoint - The optical communication sector is experiencing a significant rally, driven by TSMC's announcement of a substantial increase in capital expenditure and the ongoing demand for AI computing power, which is expected to boost the optical module industry [1] Group 1: Company Performance - Cambridge Technology (603083) shares rose by 6.13%, reaching HKD 88.3 [1] - Hong Teng Precision (06088) shares increased by 5.74%, reaching HKD 4.97 [1] - Huijun Technology (01729) shares climbed by 5.43%, reaching HKD 15.54 [1] - Huahong Semiconductor (01347) shares grew by 4.33%, reaching HKD 97.6 [1] Group 2: Industry Insights - TSMC's CEO announced a capital expenditure plan for 2026 that could reach USD 56 billion, a 37% increase from the actual expenditure of USD 40.9 billion in 2025, marking a historical high for the company [1] - TSMC's management indicated that capital expenditures will significantly increase over the next three years, with a long-term gross margin target of 56% or higher [1] - Guotou Securities reported that the demand for AI computing power is expanding, leading to sustained growth in the optical module industry, which presents opportunities across the supply chain [1] - The firm anticipates that global cloud providers' capital expenditures will continue to rise in 2026, driven by AI cluster expansions, the rollout of new computing platforms, and the implementation of technologies such as 1.6T/CPO [1]