KAIYUAN SECURITIES·2025-12-21 03:15Investment Rating - Industry investment rating: Positive (maintained) [1] Core Views - The report highlights the potential recovery in fiber optic cable prices driven by increased demand from AI applications and the acceleration of domestic AI bidding processes [6][19] - The AI ecosystem is continuously evolving, with significant advancements in models and infrastructure, particularly from major players like ByteDance and Google [15][16] - The demand for fiber optic cables is expected to rise due to the increasing requirements for internal network connectivity in AI model training and application deployment [18] Summary by Sections 1. Weekly Investment Insights - The opening of the Volcano Engine FORCE conference showcased advancements in AI agent technology and cloud-native architecture [13] - The daily token usage of the Doubao model has surpassed 50 trillion, indicating rapid industry adoption [15] - Google is enhancing its AI ecosystem, with new TPU chips expected to drive demand for liquid cooling solutions [16] - Companies are increasingly interested in renting TPU chips, which will further stimulate ASIC demand [17] - AI is driving the demand for fiber optic cables, with prices expected to recover [18] - Investment recommendations focus on key sectors such as optical networks, liquid cooling, and domestic computing power [19] 2. Communication Data Tracking - As of October 2025, the total number of 5G base stations in China reached 4.758 million, with a net increase of 507,000 from the end of 2024 [28] - The number of 5G mobile phone users reached 1.184 billion, reflecting a year-on-year growth of 18.99% [28] - The shipment of 5G mobile phones in September 2025 was 24.106 million units, representing an 8.02% year-on-year increase [28] 3. Operator Performance - The revenue from cloud services for major operators showed strong growth, with China Mobile's cloud revenue reaching 56.1 billion yuan, up 11.3% year-on-year [47] - China Telecom's cloud revenue for the first half of 2025 was 57.3 billion yuan, a 3.8% increase [47] - The ARPU values for major operators remained stable, with slight decreases noted for China Unicom [47][52]