Guoxin Securities·2025-11-09 06:20Investment Rating - The report maintains an "Outperform" rating for the communication industry [6]. Core Insights - North American optical communication companies have shown strong quarterly performance, with significant growth in data center interconnect (DCI) demand [11]. - The global computing infrastructure continues to experience high demand, driven by advancements in AI and related technologies [5][29]. Summary by Sections Industry News Tracking - Fabrinet reported a Q1 FY2026 revenue of $978.1 million, a 22% year-over-year increase and an 8% quarter-over-quarter increase, with DCI revenue reaching $138 million, up 92% year-over-year [11]. - Coherent's Q1 FY2026 revenue was $1.581 billion, a 17% increase year-over-year, with a Q2 revenue guidance of $1.56 to $1.70 billion [15]. - Lumentum's Q1 FY2026 revenue was $533.8 million, with a Q2 revenue guidance of $630 to $670 million [17]. - The launch of the scaleX640 super node by Inspur further enhances domestic computing power capabilities [19]. - NVIDIA's StarCloud-1 satellite has been launched to test AI computing capabilities in space, while Google has initiated the "Project Suncatcher" to deploy AI infrastructure in space [25][29]. Market Performance Review - The communication index rose by 0.92% this week, outperforming the Shanghai and Shenzhen 300 index, which increased by 0.82% [50]. - The optical devices/chips, operators, and satellite internet sectors performed relatively well [50]. Investment Recommendations - Continuous focus on AI computing infrastructure development is advised, with recommendations to pay attention to optical devices (e.g., Zhongji Xuchuang), communication equipment (e.g., ZTE), and liquid cooling technologies [60]. - The three major telecom operators are highlighted as important assets for dividend allocation, with stable operations and increasing dividend ratios [60]. - Key recommended stocks for the upcoming week include China Mobile, Zhongji Xuchuang, ZTE, Yingwei, and Guanghetong [60].