Changjiang Securities·2025-06-04 15:31Investment Rating - The report maintains a "Positive" investment rating for the communication industry [11]. Core Insights - The communication sector saw a 2.02% increase in the 22nd week of 2025, ranking 4th among major industries, while it has declined 2.78% since the beginning of the year, ranking 24th [2][6]. - Nvidia's FY26Q1 results showed strong growth in its data center business, with revenues of $44.06 billion, a year-on-year increase of 69.2%, indicating robust demand for AI and computing power [7]. - IDC predicts that China's intelligent computing power will reach 1,037.3 EFLOPS by 2025, growing 43% year-on-year, and will double by 2026 [8]. - The Ministry of Industry and Information Technology (MIIT) has launched the "Computing Power Interconnection Action Plan," aiming for a comprehensive standardization of computing power interconnectivity by 2026 [8]. Summary by Sections Market Performance - In the 22nd week of 2025, the communication sector increased by 2.02%, with notable stock performances from companies like Haige Communication (+15.8%) and Wuhan Fangu (+14.7%) [6]. Company Performance - Nvidia's data center revenue reached $39.11 billion in FY26Q1, a 73.3% increase year-on-year, driven by strong AI inference demand [7]. - The report highlights significant growth in intelligent computing power, with a forecasted increase to 1,460.3 EFLOPS by 2026 [8]. Policy Developments - The MIIT's action plan aims to establish a complete set of standards for computing power interconnectivity by 2026, enhancing the infrastructure for intelligent computing [8]. Investment Recommendations - The report recommends focusing on operators like China Mobile, China Telecom, and China Unicom, as well as companies in the optical module and domestic computing sectors [9].