Minsheng Securities·2025-08-05 06:11Investment Rating - The report maintains a "Recommended" rating for several companies in the optical communication sector, indicating a positive outlook for their stock performance relative to the benchmark index [4]. Core Insights - Major overseas companies such as Microsoft, Google, Meta, and Amazon have reported significant capital expenditures (CAPEX) in Q2 2025, totaling approximately $95 billion, which represents a year-on-year increase of 67% and a quarter-on-quarter increase of 24%. These companies express optimism regarding future CAPEX [1][2]. - The demand for AI is driving growth in cloud services, with Google Cloud and Microsoft Azure experiencing notable revenue increases. Google Cloud's revenue reached $13.6 billion, up 32% year-on-year, while Microsoft Azure's revenue exceeded $75 billion, reflecting a 34% increase [3]. Summary by Sections CAPEX Trends - Meta's Q2 2025 CAPEX was $17 billion, a 101% increase year-on-year, and the company raised its full-year CAPEX guidance from $64-72 billion to $66-72 billion [2]. - Google's Q2 2025 CAPEX was $22.4 billion, a 70% increase year-on-year, with a significant portion allocated to technology infrastructure [2]. - Microsoft's Q2 2025 CAPEX was $24.2 billion, a 27% increase year-on-year, with expectations of exceeding $30 billion in the next quarter [2]. - Amazon's Q2 2025 CAPEX was $31.4 billion, a 91% increase year-on-year, with similar investment levels expected in the second half of 2025 [2]. Cloud Business Growth - Google Cloud's revenue growth accelerated to 32% year-on-year, with Q2 revenue of $13.6 billion [3]. - Microsoft Azure's revenue for FY25 reached over $75 billion, with a year-on-year growth rate of 34% [3]. - Amazon Web Services (AWS) reported Q2 revenue of $30.9 billion, maintaining a year-on-year growth rate of 17% [3]. Investment Recommendations - The report suggests focusing on upstream optical communication companies such as Zhongji Xuchuang, Xinyi Sheng, and Guangxun Technology, among others, due to their expected benefits from the ongoing high CAPEX [3].