Guoxin Securities·2025-06-02 09:27Group 1: Core Views - The communication sector outperformed the market in May, with the communication index rising by 3.98% compared to a 1.85% increase in the CSI 300 index, ranking 9th among 31 primary industries [1][14] - The PE valuation of the communication industry is showing a recovery trend, currently at 20.9 times, which is relatively low compared to historical levels [18][22] - Key sub-sectors such as military informationization, optical modules, and satellite internet have performed well, with respective increases of 11.2%, 10.6%, and 8.1% [1][26] Group 2: AI Investment Trends - Major internet companies like Alibaba and Tencent are significantly increasing their AI investments, with Alibaba's capital expenditure reaching 24.612 billion yuan, up 120.68% year-on-year, and Tencent's at 27.476 billion yuan, up 91.35% year-on-year [30][39] - Nvidia reported a 69% year-on-year revenue growth in Q1 2026, driven by a 73% increase in data center revenue, indicating sustained high demand for AI [53][58] - CoreWeave, a GPU cloud service provider, reported a 420% year-on-year revenue growth in Q1 2025, highlighting the booming demand for GPU as a service [73] Group 3: Commercial Aerospace Development - China's private rocket sector is accelerating, with multiple commercial launch sites being planned, including four in Hainan and four in Jiuquan [3] - The successful flight recovery test of the Yuanxing-1 rocket by Arrow Yuan Technology marks a significant milestone in China's commercial space endeavors [3] Group 4: Investment Recommendations - The report suggests focusing on AI cloud-side and edge-side developments, as well as changes in commercial aerospace, recommending stocks like China Mobile, Tianfu Communication, and Huagong Technology for long-term investment [4][5] - The three major telecom operators are noted for their stable operations and increasing dividend ratios, making them attractive for long-term investment [4]