Core Viewpoint - The capital expenditure guidance for the three major telecom operators in 2025 is expected to decrease by 9.1% year-on-year to 289.8 billion yuan, indicating a continued contraction in overall investment spending with a focus shifting towards computing power [1] Group 1: Investment Trends - The overall investment expenditure of the three major telecom operators is continuing to shrink [1] - The focus of investment is increasingly directed towards computing power [1] Group 2: Industry Growth Metrics - In the first half of 2025, the cumulative mobile internet traffic reached 186.7 billion GB, representing a year-on-year growth of 16.4%, with the growth rate increasing month by month since the beginning of 2025 [1] Group 3: Future Developments - There is an acceleration in the large-scale deployment of 5G-A and a faster advancement in 6G technology research and development [1] - AI-driven demand for new types of optical fibers in data centers is increasing, with multi-mode optical fibers being adopted more rapidly [1] - The deployment of fiber access is entering a mature phase, with steady progress in the construction of gigabit optical networks and a transition towards "ten-gigabit" upgrades [1]

Core Insights - The report from CICC highlights the expected surge in AI hardware demand driven by the increasing capabilities of large models and diverse application scenarios by the second half of 2025 [1] - Key trends to watch include the growing certainty of domestic and international computing power chain demand, the rising importance of networks in AIDC, and the accelerated deployment of AI applications such as Agents [1] Group 1: AI Hardware Demand - The demand for AI hardware is anticipated to grow significantly as AI inference computing power requirements continue to rise [1] - The SW communication equipment sector saw a 31.4% increase as of August 8, 2025, outperforming the broader market [1] - The computing power chain remains a primary investment theme, influenced by factors such as the release of DeepSeek R1 and expectations surrounding North American AI [1] Group 2: Investment Directions - Three main investment directions in AI are suggested: 1. New hardware technologies, with a focus on AI ASICs that offer lower costs and better power efficiency [2] 2. Domestic production, with the resumption of H20 deliveries and the ongoing improvement of the domestic AI chip supply chain [2] 3. AI applications, particularly the acceleration of terminal innovations and the growth of IoT device connectivity [2] Group 3: Telecom Capital Expenditure - Telecom capital expenditures are increasingly directed towards computing networks, with a projected 9.1% year-on-year decrease to 289.8 billion yuan in 2025 [3] - The cumulative mobile internet traffic reached 186.7 billion GB in the first half of 2025, marking a 16.4% year-on-year increase [3] - Key areas of opportunity include the accelerated deployment of 5G-A, advancements in 6G technology, and the growing demand for new types of optical fibers driven by AI [3]