Group 1 - Nvidia announced a partnership with OpenAI, involving a plan to build a large data center and an investment of up to $100 billion [1][2] - OpenAI will utilize Nvidia's systems to construct and deploy at least 10 gigawatts of AI data centers, equivalent to the electricity consumption of 8 million American households [1][2] - Nvidia's CEO stated that 10 gigawatts corresponds to 4 to 5 million GPUs, which is about double the company's total shipments this year compared to last year [1][2] Group 2 - Alibaba Cloud and Nvidia announced a collaboration in the Physical AI sector, integrating Nvidia's software stack into Alibaba's AI platform to enhance various AI applications [3] - The investment outlook remains positive for the computing power industry chain, with strong fundamentals despite external challenges [4] - The AI industry and related AIDC industry chain are expected to maintain high growth, with 2025 potentially being a pivotal year for AI infrastructure in China [4] Group 3 - Key investment recommendations include focusing on optical modules, switches, servers, and AIDC-related companies [6] - The offshore wind cable industry is recovering, presenting good opportunities for leading companies in the sector [5] - The satellite internet industry is also showing positive developments domestically, indicating potential for future growth [5]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [8] Core Viewpoints - The overseas computing power industry chain remains highly prosperous and has not been impacted by DeepSeek and trade frictions, with stronger fundamental resonance in the related industry chain. The AI industry is viewed as the main investment theme for the year, with expectations for continued high prosperity in the AI sector and the AIDC industry chain. The year 2025 is anticipated to be a pivotal year for domestic AI infrastructure competition and application development [4][22]. - The report emphasizes the importance of "AI + overseas expansion + satellite" core investment opportunities, highlighting areas such as optical modules, liquid cooling, and domestic computing power lines. The report also notes the recovery of the offshore wind industry and the promising developments in the satellite internet sector [5][23]. Summary by Sections 1. Artificial Intelligence and Digital Economy - Key recommendations include: - Optical modules & optical devices: Focus on companies like Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, and Yuanjie Technology [6]. - Switch server PCB: Key recommendations include Huadian Co., ZTE, and Unisplendour [6]. - Low valuation, high dividend, and cloud computing IDC resource reassessment: China Mobile, China Telecom, and China Unicom [6]. - AIDC & cooling: Key recommendations include Yingweike, Runze Technology, and Guanghuan New Network [6]. - AIGC applications / edge computing: Key recommendations include Yiyuan Communication, Guanghetong, and Meige Intelligent [6]. 2. Offshore Wind and Submarine Cables & Intelligent Driving - Offshore wind and submarine cables: Key recommendations include Hengtong Optic-Electric, Zhongtian Technology, and Oriental Cable [7]. - Recovery of overseas expansion & concentration on leading companies: Key recommendations include Huace Navigation, Weisheng Information, and Tuobang Co. [7]. - Intelligent driving: Suggested focus on modules & terminals, sensors, connectors, and structural components [7]. 3. Satellite Internet & Low Altitude Economy - Accelerated development of low-orbit satellites and low-altitude economy: Key recommendations include Huace Navigation and Haige Communication [8]. - Suggested focus on companies like Chengchang Technology, Zhenlei Technology, and Shenglu Communication [8]. 4. Market Performance Review - The communication sector rose by 7.02% during the week of July 14-18, outperforming the CSI 300 index by 5.93 percentage points. The communication equipment manufacturing sector increased by 9.80% [29][31].