SINOLINK SECURITIES·2025-06-15 14:14Investment Rating - The report suggests a positive outlook for the AI-related sectors, particularly in servers and IDC, driven by strong demand for AI computing power and infrastructure [4]. Core Insights - The continuous breakthroughs in large model capabilities are expected to accelerate AI penetration across various industries, leading to sustained growth in computing power demand [1]. - Oracle's capital expenditure guidance indicates strong AI demand, with projected cloud revenue growth exceeding 40% in FY26 [1]. - NVIDIA's plans to deploy over 3000 EFLOPS of AI computing power in Europe and establish 20 AI factories highlight the increasing demand for AI infrastructure [1]. - The report emphasizes the robust growth in AI computing demand, particularly in Europe, and recommends focusing on companies within NVIDIA's supply chain [2][6]. Summary by Sections Industry Overview - The telecommunications sector is experiencing steady growth, with major operators reporting a 1.0% year-on-year increase in telecom revenue [3]. - The AI computing demand remains strong globally, with NVIDIA's initiatives in Europe expected to significantly boost AI capabilities [6]. Sub-Sector Analysis - Servers: The server index decreased by 2.10% this week but has a monthly increase of 2.11%. The demand for AI computing power is expected to rise sharply in Europe due to NVIDIA's initiatives [2][6]. - Optical Modules: The optical module sector saw a 1.64% increase this week, with a monthly rise of 13.47%. The demand for 800G/1.6T modules is expected to increase due to Oracle's capital expenditure adjustments [2][10]. - IDC: The IDC index decreased by 1.85% this week but has increased by 4.44% this month. The establishment of AI factories in Europe is anticipated to drive IDC construction [14]. Key Data Updates - Major telecom operators reported a total revenue of 598.5 billion yuan in the first four months, reflecting a 1.0% year-on-year growth [3]. - Capital expenditures from major tech companies like Microsoft, Google, Meta, and Amazon have shown significant year-on-year increases, indicating strong investment in AI infrastructure [3]. Investment Recommendations - The report recommends focusing on sectors such as servers and IDC driven by domestic AI development, as well as optical modules benefiting from overseas AI growth [4].