Investment Rating - The report assigns an "Outperform" rating for the communication industry [5] Core Insights - The communication sector has shown a mixed performance, with the communication index rising by 1.66% during the week of January 5 to January 11, 2026, underperforming compared to major indices like the Shanghai Composite Index, which rose by 3.82% [15] - The report highlights significant advancements in AI performance and efficiency with the launch of NVIDIA's Rubin architecture, which integrates multiple components to enhance AI capabilities [26][29] - The collaboration between Jiangsu Zhichi Zhiyuan and Wuxi Chelian Tianxia focuses on developing a system-level solution for smart automotive electronics, showcasing the potential of optical communication technology in the automotive sector [41][42] - AWS has initiated commercial deployment of hollow-core fiber, which is expected to play a crucial role in connecting data centers, despite current supply challenges [43][44] - CRU has identified key trends in the optical fiber and cable industry, emphasizing the growing demand driven by AI and data center investments, which are reshaping market dynamics [45][46] Summary by Sections 1. Market Review - The communication index underperformed relative to the broader market, ranking 27th among 31 sectors [15] - The highest gains in sub-sectors included communication application value-added services (17.99%) and other communication equipment (15.46%) [18] - Notable stock performances included Nanjing Panda (49.10%) and Tongyu Communication (42.34%) leading in gains, while Hengbao Co. (-8.05%) and Cambridge Technology (-7.96%) faced significant declines [21] 2. Industry Dynamics 2.1 NVIDIA's Rubin Architecture - The Rubin platform significantly enhances AI performance, with a 5x increase in inference performance and a 3.5x increase in training performance compared to previous generations [26][29] 2.2 Optical Communication in Automotive - The Deep Fusion EEA architecture aims to support high-density data transmission for smart vehicles, addressing the limitations of traditional wiring [41][42] 2.3 AWS Hollow-Core Fiber Deployment - AWS is deploying hollow-core fiber to connect approximately 10 data centers, although supply remains a challenge [43][44] 2.4 CRU's Industry Trends - AI-driven data center investments are expected to be the strongest growth driver, with a shift towards high-density optical fiber connections [46][49]