Century Securities·2025-11-03 03:02Investment Rating - The report indicates a positive investment outlook for the TMT industry, particularly focusing on the capital expenditure trends of major cloud service providers [1]. Core Insights - Capital expenditures of major overseas cloud providers continue to rise, with Google, META, Microsoft, and Amazon showing significant year-on-year growth in Q3 2025. Google reported a capital expenditure of $23.9 billion, up 83% year-on-year, while META's capital expenditure reached $19.4 billion, up 134% year-on-year [3]. - The report highlights that AI is becoming a key driver for revenue growth across cloud services, with over 70% of Google Cloud customers utilizing AI products. This trend is expected to continue, driving demand for AI computing power [3]. - The overall capital expenditure growth for the four major cloud service providers is projected to reach approximately 60% in 2025 [3]. Market Weekly Review - The TMT sector experienced varied performance in the week of October 27-31, with the computer sector up by 1.82%, while the communication sector fell by 3.59%. Notably, the horizontal general software sub-sector surged by 10.05% [3][5]. - The report provides detailed weekly performance metrics for various sub-sectors within TMT, indicating a mixed market sentiment [3][5]. Industry News and Key Company Announcements - Major events in the industry include the pre-sale of AI glasses by Baidu and various upcoming technology conferences, indicating ongoing innovation and investment in AI and cloud technologies [15][16]. - Significant announcements from companies include NVIDIA's collaboration with various firms to develop large language models and Google's CEO's remarks on the growth of AI product usage among cloud customers [15][16][18]. Company Performance Highlights - Google Cloud's revenue for Q3 2025 reached $15.157 billion, with a year-on-year growth rate of 34%. Microsoft Azure also maintained a strong growth rate of 39% year-on-year [3]. - META's advertising revenue for Q3 2025 was $50.1 billion, reflecting a 26% year-on-year increase, showcasing the effectiveness of AI in enhancing advertising efficiency [3]. AI Empowerment and Business Acceleration - The report emphasizes that AI is increasingly validating its role in accelerating core business operations for cloud providers, with significant investments expected to continue driving AI capabilities [3]. - The demand for AI computing power is anticipated to grow, particularly in segments such as optical modules, PCBs, and server manufacturing, presenting potential investment opportunities [3].