Shanghai Securities·2025-08-07 08:35Investment Rating - The report maintains an "Overweight" rating for the communication industry [4] Core Insights - The U.S. non-farm payrolls fell short of expectations, with only 73,000 jobs added in July, leading to a downward revision of previous months' data by a total of 258,000 jobs, marking the worst performance since the pandemic [8] - The overall market sentiment may be affected in the short term due to the new tariffs that took effect on August 1, raising the average tariff rate to approximately 18% [8] - The expectation of a Federal Reserve rate cut in September is nearing 90%, indicating that risks are relatively controllable [8] - The performance of U.S. tech stocks has been driven by strong earnings, with over 85% of S&P 500 companies exceeding earnings expectations [9] - Major tech companies like Alphabet, Microsoft, and Meta have announced increased investments in AI, citing a continued shortage of AI computing power [9] - The capital expenditure plans for these companies have been significantly raised, with Google increasing its 2025 capital expenditure by $10 billion to $85 billion, Microsoft planning to exceed $30 billion in Q1 2026, and Meta adjusting its annual capital expenditure to between $66 billion and $72 billion [9] Summary by Sections Industry Overview - The communication industry is expected to benefit from the ongoing trends in AI and technology investments, with a focus on emerging AI applications and products [10] - Companies like Figma and Out of the Box are introducing innovative AI-driven products, with Figma's revenue projected to grow by 48% to $749 million in 2024 and 46% to $228 million in Q1 2025 [10] - The report suggests monitoring specific companies in the light module, domestic computing, PCB, and AI application sectors for potential investment opportunities [10]