Summary of Conference Call on Communication Sector Industry Overview - The communication sector is currently experiencing a mixed performance, with short-term excess returns expected from optical modules and the North American computing chain, but absolute returns require more driving changes [1][2] - The operator segment is characterized by defensive attributes, showing low earnings volatility, while the broader wireless industry and edge AI products are impacted by US-China trade tensions, leading to a slight decline in exports in Q3, although year-on-year growth remains positive [1][3] Key Insights and Arguments - **Optical Module Demand**: The demand for optical modules is substantial, with 800G demand reaching 40-45 million units and 1.6T demand at 20 million units, indicating a supply shortage and limited price reductions expected [1][9] - **Growth Projections**: The industry is expected to see significant growth through 2026, with new demand anticipated to be very high, and the outlook is increasingly clear for the medium to long term [1][10] - **North American Computing Chain**: The North American computing chain is projected to reach new highs by the end of Q3, and if positive trends continue, the outlook for 2026 and beyond will be more optimistic [4][13] - **Investment Value**: The AI and North American computing chains are considered to have strong investment value based on certainty, valuation, and short-term growth potential, suggesting continued investment in these areas [7] Additional Important Points - **Supply Chain Preparations**: In a supply-demand imbalance, order guidance for the end of this year and into next year may be released early to allow supply chains to prepare for long-cycle materials [4][12] - **Ruby Architecture**: The Ruby-related industry chain is beginning to prepare for increased demand in 2026, with cloud vendors starting to place orders for 1.6T modules [8] - **Market Activity in October**: October is typically an active month for the optical module market, coinciding with the release of Q3 earnings from North American computing companies, which may provide optimistic guidance and product upgrades [11] Conclusion - The communication sector, particularly the optical module market and North American computing chain, is poised for growth despite current challenges. The demand for optical modules is robust, and the industry is preparing for significant future orders, indicating a positive outlook for the coming years [1][10][12]