Nvidia(US:NVDA) Shanxi Securities·2025-09-04 10:17Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected performance exceeding the benchmark index by more than 10% [1][43]. Core Insights - Nvidia's recent financial results continue to drive global computing investment sentiment, with a strong sequential growth in network revenue, which positively impacts the optical module market [3][15]. - Alibaba Cloud's Q2 performance exceeded expectations, with a 26% year-on-year revenue increase to 33.4 billion yuan, marking the highest growth rate in three years, and a significant rise in capital expenditures [5][17]. - The emergence of supernodes in domestic chip development is expected to accelerate market growth for copper connections and optical modules, enhancing the value of server manufacturing [7][18]. Summary by Sections Industry Dynamics - Nvidia's Q2 revenue reached $46.7 billion, a 56% year-on-year increase, with data center revenue also growing by 56% [3][15]. - Google showcased its TPUv7 at Hotchips2025, indicating advancements in optical switching technology that could enhance performance significantly [4][16]. - Alibaba Cloud's capital expenditures surged to 38.6 billion yuan in Q2, reflecting a 220% increase year-on-year, driven by robust AI-related revenue growth [5][17]. Market Performance - The overall market saw significant gains during the week of August 25-29, 2025, with the Shenwan Communication Index rising by 12.38% [8][19]. - The top-performing sectors included optical cables and modules, with weekly increases of 52.59% and 29.99%, respectively [8][19]. Company Recommendations - Key companies to watch in the domestic computing server sector include ZTE, Unisoc, and Huakong Technology [7][19]. - For overseas supernode opportunities, companies like Zhongji Xuchuang and New Yisheng are highlighted [7][19].