Group 1 - The core viewpoint indicates that the demand for AI computing power is expected to increase, with leading companies potentially raising their total demand forecast for 2026 to 15 million units, reflecting a strong and sustainable growth cycle in the optical module sector driven by AI computing power [1] - The upcoming release of Google's Gemini 3 series on October 22 is anticipated to catalyze market activity, with Gemini 3.0 expected to surpass the current top model, Gemini 2.5 Pro, in multiple dimensions, optimizing latency and cost control for faster and more economical AI services [1] - North American cloud service providers (CSPs) are projected to increase capital expenditures significantly, with a forecast of over $370 billion for the 2025 fiscal year, representing a 40% year-on-year growth, which will directly benefit the optical module and IDC sectors [2] Group 2 - Oracle's recent quarterly report shows a remaining performance obligation (RPO) of $455 billion, an increase of $317 billion from the previous quarter, indicating a strong commitment to AI investments with a projected capital expenditure of $35 billion for the 2026 fiscal year [2] - Domestic cloud service providers in China are also ramping up AI investments, with expected expenditures exceeding 450 billion yuan by 2025, alongside accelerated industrialization of domestic super-node computing clusters [2] - The artificial intelligence industry is experiencing rapid growth, with significant infrastructure investments and mature business models overseas, while domestic GPU production is increasing, contributing to sustained strength in computing power [2]

Market Performance - On October 20, the market experienced high-level fluctuations in the early session, with the ChiNext Index leading the gains. The total trading volume in the Shanghai and Shenzhen markets reached 1.16 trillion yuan, a decrease of 16.5 billion yuan compared to the previous trading day. By midday, the Shanghai Composite Index rose by 0.69%, the Shenzhen Component Index increased by 1.38%, and the ChiNext Index surged by 2.49%. Notably, overseas computing power was strong, with the ChiNext AI ETF rising by 4.14% and the communication ETF increasing by 3.97% [1]. Factors Driving the Upsurge - Nvidia's Rubin shipment expectations for 2026 have been raised, and the competitive landscape in the optical module market remains stable. If the market expands, it is theoretically expected that the performance of related manufacturers will also improve [2]. - The upcoming release of Google's Gemini 3 series has generated buzz, with leaked demo tests indicating its strong capabilities. Gemini 3 addresses AI display issues with precision down to the second hand, outperforming GPT-5 in certain aspects. The number of tokens processed by Google has seen a significant increase, surpassing 1.3 trillion monthly, up from 980 trillion in July and 480 trillion in May, indicating a steep growth trajectory [2]. Market Outlook - The AI wave is expected to continue, with a focus on computing power as the main line. The acceleration of industrialization is evident, with overseas infrastructure investments resonating with performance and mature business models leading to a noticeable speed-up in AI. Domestically, the production of domestic GPUs is accelerating, and domestic computing power remains strong. Recent tariff expectations have led to a pullback in computing power, presenting potential low-position investment opportunities [4]. - There is a caution regarding short-term pullback risks. Geopolitical tensions and tariff risks are expected to have a relatively larger impact on consumer electronics and communications sectors, while the semiconductor sector is less affected. Multiple disruptive events may increase market volatility, and significant developments may remain uncertain ahead of APEC [5]. Investment Considerations - Following previous pullbacks, better investment opportunities may arise. Investors are encouraged to consider both domestic and overseas computing power investments, with a focus on communication ETFs (515880) and semiconductor equipment ETFs (159516) [5].