HTSC·2025-08-04 09:56Investment Rating - The report maintains a "Buy" rating for Tianfu Communication, Xingwang Ruijie, Ruijie Network, China Mobile, China Telecom, China Unicom, Huace Navigation, and Hengtong Optoelectronics, while recommending "Hold" for Huafeng Technology [9][50]. Core Insights - North American cloud service providers (MAMG: Microsoft, Amazon, Meta, Google) reported a 69% year-on-year increase in capital expenditures (CapEx) for Q2 2025, totaling $87.4 billion, indicating strong demand for computing power [1][2][15]. - The report anticipates that the total CapEx for 2025 will reach $333.8 billion, reflecting a 49% year-on-year growth, with optimistic guidance from major players [4][15]. - The report suggests that the robust CapEx growth from overseas cloud service providers will continue to boost confidence in computing power demand, benefiting both the overseas computing supply chain and domestic internet companies [1][15]. Summary by Sections Market Performance - The communication index rose by 2.54% last week, while the Shanghai Composite Index fell by 0.94% and the Shenzhen Component Index dropped by 1.58% [1][15]. Key Companies and Dynamics - The report highlights key companies in the AI computing supply chain for 2025, recommending Tianfu Communication, Xingwang Ruijie, Ruijie Network, and Huafeng Technology, as well as core asset value reassessment for China Mobile, China Telecom, and China Unicom [5][9]. - Major cloud providers' CapEx for Q2 2025 includes Microsoft ($17.08 billion, +23%), Amazon ($31.37 billion, +91%), Meta ($16.54 billion, +102%), and Google ($22.45 billion, +70%) [16]. Capital Expenditure Guidance - Microsoft expects its Q1 FY26 CapEx to exceed $30 billion, while Amazon's Q2 CapEx rate is projected to represent the investment rate for the second half of the year [4][16]. - Meta has raised its 2025 CapEx guidance to $66-72 billion, and Google has increased its guidance to $85 billion [4][16]. Investment Recommendations - The report emphasizes the importance of focusing on the global AI computing supply chain, including components like optical modules, liquid cooling, copper connections, and switches [1][15]. - The report also notes the expected growth in domestic internet companies' investments driven by the positive outlook from overseas cloud service providers [1][15].