Group 1 - The computing power sector is experiencing significant growth, with Nvidia reducing costs by 70%, and analysts optimistic about an 80% penetration rate and a market size of $40 billion [4][5] - The demand for low-power, high-speed cluster solutions is driving the need for higher integration, which may provide better solutions [6] - Leading communication equipment manufacturers have mature solutions, indicating that the CPO switch industry may soon be industrialized [7] Group 2 - The compound annual growth rate (CAGR) for shipments in the next five years is expected to reach 123%, with a market opportunity of $250 billion on the horizon [9][10] - The solid-state battery industry is accelerating its 0-1 industrialization due to increasing support from policies and applications [10] - The global market for solid-state batteries is projected to exceed $250 billion by 2030, with rapid growth expected in the domestic market by 2027 [12]

Group 1 - The computing power sector remains highly prosperous, with a long-term optimistic outlook based on the growth of tokens, despite the lack of blockbuster applications causing short-term discrepancies [1] - Investment recommendations include focusing on the optical module and CPO segments, as well as continuously monitoring domestic computing power chain-related sectors [1] - The semiconductor equipment ETF (code: 159516) tracks the semiconductor materials and equipment index (code: 931743), which includes listed companies in the semiconductor materials and equipment manufacturing sector, reflecting the overall performance of the industry [1] Group 2 - The index constituents exhibit high growth potential and significant technical barriers, with industry allocation concentrated in the upstream segments of the semiconductor supply chain, including wafer manufacturing equipment, testing equipment, and photolithography materials [1] - Investors without stock accounts are advised to consider the Guotai Zhongzheng Semiconductor Materials and Equipment Theme ETF Initiated Link A (019632) and Link C (019633) [1]

Group 1 - The core viewpoint of the news is that the cloud computing sector, particularly driven by advancements in artificial intelligence, is experiencing renewed activity in the A-share market, with specific ETFs showing positive performance [1][2] - The cloud computing ETF (517390) closely tracks the CSI Hong Kong-Shenzhen Cloud Computing Industry Index and includes major internet companies from Hong Kong, such as Alibaba and Tencent, which together account for over 20% of the index's weight [1] - The fund manager of the cloud computing ETF, Qi Shichao, emphasizes that the main driving force behind the current cloud computing market is the progress in the AI field, with significant attention on upcoming versions of ChatGPT and DeepSeek-R2 [1] Group 2 - Multiple institutions are optimistic about the cost-effectiveness of optical modules within the computing power sector, highlighting that high-speed optical modules are currently undervalued and in a period of performance certainty [2] - The computing power industry's core driving force is identified as the certainty of technological upgrades and the phased verification of performance, with a focus on stocks with low valuations that may attract capital due to technological breakthroughs or increased orders [2] - The computer ETF (159998) also showed positive movement, rising by 0.47% with a trading volume exceeding 35 million yuan, indicating active trading among its constituent stocks [2][3] Group 3 - The computer ETF (159998) tracks the CSI Computer Theme Index, which selects stocks from the information technology services, application software, system software, and computer hardware sectors [3] - As of March 31, the top ten holdings of the computer ETF include leading companies such as Hikvision, Zhongke Shuguang, and Keda Xunfei, indicating a strong focus on industry leaders [3]

Market Performance - On June 6, 2025, the Shanghai Composite Index rose by 0.04%, while the Shenzhen Component Index fell by 0.19% and the ChiNext Index decreased by 0.45%[2] - The total market turnover was 11,518.42 billion yuan, a decrease of 1,383.50 billion yuan compared to the previous trading day[2] - A total of 2,632 stocks rose and 2,634 stocks fell across the market[2] Sector and Style Analysis - Among the 30 sectors, the top performers were Nonferrous Metals (1.17%), Communications (1.10%), and Oil & Petrochemicals (0.89%); the worst performers included Comprehensive Finance (-1.80%), Media (-0.88%), and Non-Bank Financials (-0.82%)[18] - The market style ranking was Stability > Cyclicals > 0 > Growth > Financials > Consumption[18] Fund Flow - On June 6, 2025, the net outflow of main funds was 263.69 billion yuan, with large orders seeing a net outflow of 159.72 billion yuan and small orders continuing to see a net inflow of 247.44 billion yuan[22] - Major ETFs like the Huatai-PB CSI 300 ETF and the China Southern CSI 500 ETF saw significant decreases in turnover, with changes of -1.68 billion yuan and -3.88 billion yuan respectively[27] Global Market Trends - On June 6, 2025, major Asia-Pacific indices showed mixed results, with the Hang Seng Index down 0.48% and the Nikkei 225 up 0.50%[30] - U.S. stock indices generally declined, with the Dow Jones Industrial Average down 0.25% and the S&P 500 down 0.53%[31]

Investment Rating - Industry rating: Outperform the market (maintained rating) [5] Core Viewpoints - The construction sector is expected to benefit from more proactive fiscal policies and moderate monetary policies, with an emphasis on accelerating the issuance and utilization of local government special bonds and ultra-long-term special treasury bonds [2][13] - The construction index rose by 0.56% this week, outperforming the Shanghai and Shenzhen 300 index by 0.16 percentage points, with notable gains in small and mid-cap stocks related to transformation [1][25] - The first quarter of 2025 saw significant growth in new orders for major construction companies, indicating a recovery in traditional infrastructure sectors [20][24] Summary by Sections Fiscal Policy and Economic Outlook - The April 25 Politburo meeting highlighted the need for more proactive macroeconomic policies to stabilize employment, businesses, and market expectations, with a focus on increasing fiscal spending and issuing special bonds [2][13] - The meeting's optimistic stance on policies suggests potential improvements in physical construction volumes, particularly in infrastructure and housing sectors [2][19] Market Performance - The construction index's performance this week included significant gains in construction decoration, design services, and landscaping, with leading stocks such as Hanjia Design (+31%) and Sanwei Chemical (+22%) [1][25][30] - The construction sector's performance historically shows that it tends to underperform the Shanghai and Shenzhen 300 index in the month following the Politburo meetings, but this year may differ due to positive policy signals [2][19] Investment Recommendations - Focus on infrastructure-related investment opportunities, particularly in high-growth regions such as Sichuan, Xinjiang, and Tibet, as well as cyclical sectors [1][30] - Recommendations include traditional construction blue-chip stocks and emerging business directions such as data centers and cleanroom technologies, with specific companies highlighted for their growth potential [31][32][33]

Investment Rating - Maintain "Buy" rating for the industry [4] Core Viewpoints - The market has underestimated the explosive potential of innovative connection solutions in optical communication, particularly with the increasing demand for MPO and shuffle box in complex interconnections [1][21] - The transition from 400G to higher speeds like 800G and 1.6T in optical modules is becoming a consensus, creating new opportunities for passive connection devices [3][24] - The report emphasizes the importance of high-density, high-speed, and low-power solutions in the context of growing computing clusters, which will drive innovation in passive products [24] Summary by Sections Investment Strategy - Focus on the undervalued high-speed optical interconnect sector, recommending "Two Big and Four Small" companies: Tianfu Communication, Sanhuan Group, and smaller firms like Taicheng Light, Shijia Photon, Bochuang Technology, and Zhishang Technology [7][13][24] Market Review - The communication sector has seen an increase, with the blockchain segment performing the best [18][19] - The report notes significant stock movements, with Guomai Technology leading the sector with a 46.586% increase [20] Weekly Topic - The upcoming GTC and OFC events are expected to highlight new technologies in optical communication, with a focus on the demand for more compact and efficient solutions [1][21] Key Recommendations - The report suggests monitoring developments in optical modules and passive connection devices, as these areas are poised for growth due to technological advancements and market demand [24][26]