Core Viewpoint - The trend of domestic chip replacement in China's AI server market is strengthening, with the proportion of imported chips expected to decrease significantly by 2025 [1][2]. Industry Summary - According to TrendForce, the share of imported chips in China's AI server market will drop from 63% in 2024 to 42% by 2025, while domestic chip suppliers are projected to increase their share to 40% [1][2]. - The demand for optical circuit switches (OCS) is expected to accelerate due to the expansion of data centers and the need for enhanced interconnectivity and single-card computing power [3]. Company Summary - Domestic chip manufacturers are transitioning from the conceptual phase to realizing performance, with companies like Cambrian seeing a 4200% year-on-year revenue increase to 1.111 billion yuan in Q1 2025, achieving a profit of approximately 356 million yuan [1]. - Other companies such as Haiguang Information also reported significant growth, with revenue and net profit increasing by 50.76% and 75.33% respectively [1]. - The report suggests focusing on various companies across different segments, including chip design and manufacturing (e.g., SMIC, Cambrian), optical modules (e.g., NewEase, Cambridge Technology), optical chips (e.g., Yuanjie Technology), switches (e.g., ZTE, Unisoc), and liquid cooling (e.g., Invec, Langwei) [4].