Market Overview - The Shanghai Composite Index achieved an eight-day winning streak, breaking the previous high from October 8, 2024, and reaching a nearly four-year high at 3683.46 points, with a daily increase of 0.48% [1][6] - The total market turnover exceeded 2 trillion yuan, marking a significant increase of 269.4 billion yuan compared to the previous trading day [6] Sector Performance - The top-performing sectors included Communication (4.91%), Non-ferrous Metals (2.37%), Electronics (2.01%), Pharmaceutical Biology (1.73%), and Electric Equipment (1.66%) [3] - Conversely, the sectors with the poorest performance were Banking (-1.06%), Coal (-0.81%), Food and Beverage (-0.42%), Textile and Apparel (-0.40%), and Public Utilities (-0.20%) [3] Future Outlook - The market is expected to maintain a strong upward trend, supported by improved funding conditions and fundamental recovery, with the potential for the index to gradually rise [6] - Analysts suggest focusing on sectors such as large financials, machinery, TMT (Technology, Media, and Telecommunications), and consumer goods for investment opportunities [6] Policy Impact - The Chinese government is shifting its fiscal and financial policies to stimulate consumption and support service sector loans, aiming to create a positive cycle between supply and demand [5]

Market Overview - The A-share market experienced narrow fluctuations with the Shanghai Composite Index slightly declining by 0.09% to close at 3454.79 points [2] - The Shenzhen Component Index fell by 0.61%, while the ChiNext Index dropped by 1.13% [2] - Overall, more than 3200 stocks in the market declined, indicating a bearish sentiment [4] Sector Performance - The top-performing sectors included Steel (3.37%), Coal (1.99%), and Building Materials (1.42%) [3] - Conversely, the worst-performing sectors were Electronics (-2.01%), Communication (-1.96%), and Defense & Military Industry (-1.94%) [3] - Concept stocks such as Low-E Glass (4.24%) and Silicon Energy (4.19%) showed strong performance, while Brain-Computer Interface (-2.60%) and EDR Concept (-2.47%) lagged [3] Future Outlook - The market is expected to remain volatile, with attention on domestic policies, US-China tariffs, and potential interest rate cuts by the Federal Reserve [6] - The upcoming mid-year reports in July are anticipated to significantly impact individual stock performances [6] - Analysts suggest focusing on sectors such as Finance, Machinery, Consumer Goods, and TMT (Technology, Media, and Telecommunications) for potential investment opportunities [6] Key Events - A notable surge in marine economy concept stocks was observed following the Central Financial Committee's meeting on July 1, which emphasized the high-quality development of the marine economy [5]

Core Viewpoint - The "Silicon Photonics Revolution" led by major chip companies like Nvidia, TSMC, and Broadcom is expected to transform the AI computing industry, accelerating the adoption of Co-Packaged Optics (CPO) and Optical I/O technologies from experimental labs to global applications [1][5][19]. Industry Overview - The global optical communication data center interconnect market, including CPO and Optical I/O technologies, is projected to grow at a compound annual growth rate (CAGR) of over 80% from 2028 to 2033, reaching nearly $2.5 billion by 2033 [5][19]. - The demand for Optical I/O modules in large data centers is expected to be 2-7 times that of CPO modules by 2033, indicating a significant market expansion for Optical I/O [5][11]. Company Insights - Nvidia is integrating silicon photonics technology into its high-performance networking products, which is anticipated to enhance the scalability and efficiency of its AI GPU clusters, solidifying its leadership in the AI infrastructure market [20][21]. - TSMC is expected to lead in silicon photonics chip manufacturing, leveraging its advanced processes and packaging capabilities to attract major clients like Nvidia and AMD, thereby strengthening its dominant position in the high-performance computing and optical communication chip manufacturing sectors [21][24]. - Broadcom is developing its own CPO high-performance switching chip solutions and is expected to integrate silicon photonics interfaces into its next-generation switching platforms, which will significantly enhance its competitiveness in the cloud data center market [24][27].

Core Viewpoint - The article discusses the emergence of supernodes in high-performance computing, emphasizing their role in enhancing the efficiency of large-scale model training and inference through optical technology [1][2][21]. Group 1: Supernode Architecture and Performance - Supernodes provide a new solution for large-scale model training and inference, significantly improving efficiency by optimizing resource allocation and data transmission [1]. - The architecture of supernodes can be categorized into single-layer and two-layer designs, with single-layer architecture being the ultimate goal due to its lower latency and higher reliability [4][6]. - The demand for GPU power has surged with the exponential growth of model sizes, necessitating thousands of GPUs to work in tandem, which supernodes can facilitate [1][2]. Group 2: Challenges in Domestic Ecosystem - Domestic GPUs face significant performance gaps compared to international counterparts, requiring hundreds of domestic GPUs to match the power of a few high-end international GPUs [6][8]. - The implementation of supernodes in the domestic market is hindered by limitations in manufacturing processes, such as the 7nm technology [6]. Group 3: Development Paths for Supernodes - Two main development paths are proposed: increasing the power capacity of individual cabinets to accommodate more GPUs or increasing the number of cabinets while ensuring efficient interconnection [8][10]. - Optical interconnect technology is crucial for multi-cabinet scenarios, offering significant advantages over traditional copper cables in terms of transmission distance and flexibility [10][12]. Group 4: Optical Technology Advancements - The transition to higher integration optical products, such as Co-Packaged Optics (CPO), enhances system performance by reducing complexity and improving reliability [14][16]. - CPO technology can save 1/3 to 2/3 of power consumption, which is significant even though communication power is a smaller fraction of total GPU power [16][17]. Group 5: Reliability and Flexibility - The use of distributed optical switching technology enhances the flexibility and reliability of supernodes, allowing for dynamic topology adjustments in case of node failures [18][19]. - Optical interconnect technology simplifies the supply chain, making it more controllable compared to advanced process-dependent components [19][21]. Group 6: Future Outlook - With advancements in domestic GPU performance and the maturation of optical interconnect technology, the supernode ecosystem is expected to achieve significant breakthroughs, supporting the rapid development of artificial intelligence [21].

Group 1 - The computing power industry chain is experiencing a collective surge, with significant gains in sectors such as optical packaging, components, power IoT, MLOps, and AI PCs, highlighted by Shenghong Technology reaching a historical high [1] - The Chinese government is deploying 10 national data element comprehensive experimental zones in regions like Beijing, Zhejiang, and Anhui to enhance the integration of the real economy and digital economy [1] - The National Energy Administration has initiated pilot projects for a new power system, focusing on the collaboration between computing power and electricity, with an emphasis on regions with favorable energy resources [1] Group 2 - The Ministry of Industry and Information Technology is promoting the development of the artificial intelligence industry and its integration into new industrialization, emphasizing the need for a supportive ecosystem and innovation stimulation [2] - The ministry aims to strengthen computing power supply and enhance the deployment of general and industry-specific large models, accelerating the intelligent upgrade of manufacturing processes [2] Group 3 - The "Computing Power Interconnection Action Plan" aims to establish a comprehensive standard and rule system for computing power interconnectivity by 2026, with significant growth projected in China's intelligent computing power scale [3] - By 2025, China's intelligent computing power is expected to reach 1037.3 EFLOPS, with a 43% year-on-year growth, and is projected to double by 2026 [3] Group 4 - The construction of computing power networks is crucial for enhancing the utilization of domestic computing power cards and ensuring the sustainability of computing power leasing services for government and enterprises [4] - Policies at both central and local levels are setting clear goals for domestic AI computing power construction, with an increase in project bidding for intelligent computing centers since 2024 [4]