HUAXI Securities·2025-05-04 15:10Investment Rating - Industry Rating: Recommended [3] Core Insights - Overseas cloud companies continue to show strong spending on computing power, with Q1 2025 financial reports from major firms like Alphabet, Microsoft, Meta, and Amazon indicating robust revenue growth and significant capital expenditures (CAPEX) [10][19][22] - Domestic internet giants are ramping up their capital expenditures significantly, with Tencent's CAPEX expected to reach over 100 billion yuan, Alibaba announcing a 380 billion yuan investment over three years, and ByteDance planning a 150 billion yuan budget for 2025, indicating a surge in demand for computing power in China [11][24][25] - The domestic computing power sector is experiencing a turning point, with positive financial results from companies like Cambricon and Haiguang, suggesting a substantial increase in demand for domestic chips [11][36] Summary by Sections Overseas Cloud Companies - Alphabet reported Q1 2025 revenue of $90.234 billion, a 12% increase year-over-year, with CAPEX of $17.2 billion [10] - Microsoft reported Q3 FY2025 revenue of $70.1 billion, a 13% increase, with CAPEX of $21.4 billion [10] - Meta's Q1 revenue was $42.31 billion, up 16% year-over-year, with a net profit of $16.64 billion, a 35% increase [19] - Amazon's Q1 revenue reached $155.667 billion, an 8.62% increase, with a net profit of $17.127 billion, a 64.19% increase [22] Domestic Internet Giants - Tencent's CAPEX for 2025 is projected to exceed 100 billion yuan, while Alibaba plans to invest 380 billion yuan over three years, and ByteDance's budget for 2025 is set at 150 billion yuan [11][24] - The increase in capital expenditure is expected to boost demand across the computing power supply chain, including intelligent computing centers, servers, and optical modules [11][24] Domestic Computing Power Sector - Cambricon reported a significant turnaround in Q1 2025, achieving profitability with a revenue increase of 4230.22% to 1.111 billion yuan [36] - The upgrade of the Ascend 910C architecture is seen as a pivotal moment for domestic computing power, with expectations of a substantial rise in demand for domestic chips [11][36]