KAIYUAN SECURITIES·2025-07-31 08:12Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Viewpoints - The report highlights a positive outlook for the telecommunications industry, driven by significant growth in AI-related investments and advancements in optical communication technologies [4][5] - Major companies such as Meta and Microsoft are increasing their capital expenditures, indicating a robust investment environment in AI and cloud services [4][5] - The report emphasizes the importance of the AI computing power supply chain and suggests various investment opportunities across different segments, including optical modules, liquid cooling, and optical chips [5] Summary by Sections Industry Trends - The telecommunications sector is expected to outperform the overall market, with a focus on AI and optical communication growth [1][4] - Recent financial results from companies like Celestica and Corning show significant year-over-year revenue growth, indicating a strong market demand [4] Company Performance - Meta reported Q2 2025 revenue of $47.52 billion, exceeding expectations, and raised its full-year capital expenditure guidance to between $66 billion and $72 billion [4] - Microsoft’s cloud business showed impressive growth, with a 26% year-over-year increase in Azure revenue [4] Investment Opportunities - The report identifies key investment targets within the AI computing power supply chain, recommending specific companies in various segments such as optical modules and liquid cooling [5] - Notable recommended stocks include Zhongji Xuchuang and New Yisheng in the optical module sector, and Yingwei in the liquid cooling segment [5]