Nvidia(US:NVDA) SINOLINK SECURITIES·2025-06-29 14:48Investment Rating - The report suggests a positive outlook for the telecommunications and AI-related sectors, indicating a "Buy" rating for industries expected to outperform the market by over 15% in the next 3-6 months [56]. Core Insights - Telecommunications revenue showed slight recovery in May, with a total of 748.8 billion yuan for the first five months of 2025, reflecting a year-on-year growth of 1.4% [1][4]. - Nvidia's market capitalization reached 3.77 trillion USD, becoming the world's largest company, driven by increasing demand for AI infrastructure [1][7]. - China Mobile announced a significant procurement project for G.654E optical fiber cables, with an estimated scale of 22,900 kilometers, indicating a tripling of demand compared to the previous procurement [1][10]. - The approval of two infrastructure REITs for data centers by the China Securities Regulatory Commission supports ongoing expansion in the data center sector [1][3]. Summary by Sections Telecommunications - The telecommunications sector is experiencing a gradual recovery, with a reported revenue of 748.8 billion yuan for the first five months of 2025, up 1.4% year-on-year [4][19]. - The number of fixed broadband users reached 682 million, with gigabit users accounting for 32.7% [19]. Servers - The server index increased by 5.71% this week, with Nvidia's stock price rising 4.3% to 154.31 USD, reflecting strong market confidence in AI infrastructure investments [2][7]. - The global demand for AI computing power remains robust, with recommendations to focus on companies like Industrial Fulian, which are part of Nvidia's supply chain [2][7]. Optical Modules - The optical module index rose by 7.05% this week, driven by increased demand for 800G and 1.6T high-speed optical modules [2][9]. - The procurement of low-loss G.654E optical fibers by China Mobile is expected to boost demand for data center interconnect (DCI) solutions [1][10]. Data Centers (IDC) - The IDC index increased by 6.73% this week, with expectations of a surge in AI application demand in the second half of 2025 [3][13]. - The approval of REITs for data center projects indicates a strong financial backing for infrastructure expansion [3][13]. Investment Recommendations - The report recommends focusing on sectors driven by domestic AI development, such as servers and IDC, as well as those benefiting from international AI growth, including servers and optical modules [5].