Alphabet(US:GOOG) NORTHEAST SECURITIES·2025-11-24 02:36Investment Rating - The report maintains an "Outperform" rating for the communication industry, consistent with the previous rating [5]. Core Insights - The commercialization of AI is accelerating, with Google achieving significant revenue growth, surpassing $100 billion in Q3 2025. The Gemini model processes 7 billion tokens per minute, and the Gemini App has reached 650 million monthly active users. The integration of generative AI into advertising is positively impacting all aspects of the advertising system [3][4]. - The communication sector has shown resilience, with the communication index declining only 2.51% compared to larger market declines, indicating relative stability [14][17]. - The report highlights investment opportunities in Google's TPU supporting optical modules and OCS due to the increasing demand for computational power driven by AI [3]. Summary by Sections Market Review - The communication index fell by 2.51% during the week of November 17-23, 2025, while major indices like the Shanghai Composite and Shenzhen Component saw declines of 3.90% and 5.13%, respectively [14]. - Among communication sub-sectors, communication network equipment and devices had the smallest decline at -1.76%, while communication cables and accessories experienced the largest drop at -6.09% [17]. - Notable stock performances included Dekeli (+24.82%), Shida Group (+18.16%), and Guangku Technology (+14.86%) as top gainers, while Sanwei Communication (-19.61%), Huiyuan Communication (-16.44%), and Zhongjia Bochuang (-15.32%) were the largest losers [20]. Industry Dynamics - Google launched the Gemini 3 AI model on November 18, 2025, claiming it to be the most intelligent and factually accurate AI system to date, with significant improvements in reasoning and multi-modal understanding capabilities [25][26]. - The Nano Banana 2 image generation tool was updated on November 20, 2025, enhancing image quality and editing consistency, and expanding its capabilities to generate explanatory images for presentations [29]. - Yuanjie Technology has initiated plans for an H-share listing on the Hong Kong Stock Exchange to enhance its international strategy and brand influence, reflecting a trend of optical communication companies pursuing overseas listings [30].