East Money Securities·2026-03-17 03:44Investment Rating - The report maintains a rating of "Outperform" for the industry [5] Core Insights - Nvidia has announced a strategic investment of $4 billion in the optical communication industry, partnering with Lumentum and Coherent [9][14] - Broadcom has launched the first single-channel 400G DSP, optimized for 1.6T transceiver solutions, addressing the growing bandwidth demands of AI data centers [9][16] Market Review - The overall communication industry has seen a decline, with the communication index down 0.7% over the past two weeks, ranking 10th among 31 sectors [2][19] - The valuation level of the communication sector is relatively high, with a dynamic PE ratio of approximately 52.77 as of March 13, 2026, compared to a historical average of 32.51 [2][23] - In terms of sub-sectors, operators, submarine cables, and North American AI sectors have shown the highest growth rates of 5.9%, 3.8%, and 1.2% respectively [2][26] - Among individual stocks, 38 out of 128 in the communication sector rose, with notable gains from Ruisi Kanda (32.5%), Lian Te Technology (20.7%), and others [2][27] Configuration Recommendations - The report suggests focusing on the core segments of the computing power industry chain, including new technology penetration and the improvement of domestic supply chains. Key areas of interest include optical modules, copper interconnects, switches, temperature control equipment, power supply, IDC rooms, edge AI, robotics, operators, and satellite communications [3][34]