Core Insights - The article highlights the collaboration between China Telecom and Huawei at the 2025 MWC Shanghai, focusing on the launch of the "Intelligent Uplink" technology, which signifies a shift in 5G-A networks towards becoming a foundation for Mobile AI networks [1][4]. Group 1: Technological Advancements - The "Intelligent Uplink" technology enhances data uplink capabilities, addressing the growing demand from real-time interactive scenarios such as smart wearables, IoT, AI assistants, and robotics [1]. - This innovation utilizes AI models to predict channel quality in real-time, achieving a more precise estimation capability for 5G-A networks, reducing latency by over 30%, and improving uplink speed and edge experience by over 15% [1]. Group 2: Market Impact - Huawei's Vice President, Cao Ming, reported significant growth in Mobile AI applications, with monthly active users increasing from 150 million to 1.25 billion, and AI smartphone shipments rising from 5 million to 400 million [4]. - The collaboration between China Telecom and Huawei aims to unlock the potential of 5G-A and promote the integration of AI with 5G-A technologies [5]. Group 3: Business Innovations - Huawei and the three major Chinese telecom operators have jointly launched commercial results for 5G-A experience operations and AI to Everything (AItoX), covering various scenarios including home, vehicle networking, and industrial production [7]. - Huawei introduced the latest practices of AI-Centric Network in the infrastructure sector, establishing a smart computing hub to support business in the intelligent era [8]. Group 4: Solutions and Applications - Huawei unveiled a new AI UBB solution that provides end-to-end coverage from home broadband to backbone networks, enhancing built-in computing power and performance to meet the extreme bandwidth and low latency requirements of AI applications [9].

Investment Rating - The report maintains an "Overweight" rating for the communication industry [8] Core Insights - The report highlights strong investment opportunities in the optical module sector and CPO technology, driven by continuous high growth in performance and low PE valuations [12][13] - Broadcom's recent launch of the TH6 chip is expected to accelerate the implementation of CPO technology, which is anticipated to significantly enhance GPU cluster stability and reduce link fluctuations [2][13] - The report emphasizes the potential for AI business revenue growth, with network products contributing 40% to Broadcom's AI revenue in Q2 FY25, and forecasts that at least three clients will deploy million-card clusters by 2027 [12][14] Summary by Sections Market Performance - The communication index rose by 5.27% last week, outperforming the Shanghai Composite Index and Shenzhen Component Index, which increased by 1.13% and 1.42% respectively [12] Key Companies and Dynamics - Recommended companies include ZTE Corporation, Zhongji Xuchuang, Xinyi Technology, Tianfu Communication, Taicheng Light, and Global Data, focusing on AI computing power chains and core asset value reassessment [2][9] Investment Recommendations - Specific stock recommendations include: - China Mobile (600941 CH) - Buy, target price 126.40 - China Telecom (601728 CH) - Buy, target price 9.13 - China Unicom (600050 CH) - Hold, target price 7.62 - ZTE Corporation (000063 CH) - Buy, target price 39.41 - Zhongji Xuchuang (300308 CH) - Buy, target price 164.78 - Xinyi Technology (300502 CH) - Buy, target price 128.76 - Tianfu Communication (300394 CH) - Buy, target price 119.12 - Taicheng Light (300570 CH) - Hold, target price 99.01 - Lais Information (688631 CH) - Hold, target price 84.41 - Global Data-SW (9698 HK) - Buy, target price 40.47 [9][50]