算力筑基，光网跃迁

Investment Rating - The report suggests a positive investment outlook for the communication sector, particularly focusing on sub-sectors like optical communication and smart cards, which have shown better performance recently [1][10]. Core Insights - The communication industry is experiencing a downturn, with the overall index down by 0.78%, while specific sub-sectors like smart cards and optical devices have seen gains of 3.88% and 3.51% respectively [1][10]. - The integration of 5G and AI is expected to enhance profitability, with approximately 70% of the constituents in the 5G communication theme index having business related to 5G and about 76% related to AI [2][43]. - The report highlights a significant growth in revenue and net profit for the 5G communication theme index constituents, projecting a compound annual growth rate (CAGR) for revenue in the range of 10% to 30% over the next three years [2][45]. Summary by Sections 1. Weekly Market Performance - The communication sector index declined by 0.78%, while the overall market indices showed mixed results, with the Shanghai Composite down by 0.25% and the ChiNext up by 0.22% [1][10]. - Sub-sectors such as smart cards and optical devices performed well, with respective gains of 3.88% and 3.51% [1][10]. 2. Industry Development and Key Events - The global data center market is driven by AI, digitalization, and policy support, with the top ten data center service providers holding 59.5% of the total global resource capacity [24][26]. - The report notes a rapid increase in the proportion of large and super-large data centers in China, which are expected to dominate new constructions [26][30]. 3. 5G and AI Integration - The report emphasizes the high correlation between 5G and AI businesses, with a stable recovery in profitability observed [2][43]. - The constituents of the 5G communication theme index are projected to achieve a total revenue of CNY 1,788.51 billion in 2024, reflecting a year-on-year growth of 16.4% [2][45]. 4. Investment Recommendations - The report recommends focusing on high-quality stocks in sub-sectors with improving market conditions, particularly in optical communication and data centers [3][41]. - Specific companies to watch include Zhongji Xuchuang, New Yisheng, and Tianfu Communication, among others [3][41].