Investment Rating - The industry investment rating is "Overweight (Maintain)" [1] Core Viewpoints - The report highlights the ongoing growth and technological advancements in the optical communication sector, driven by key catalysts such as increased capital expenditure from cloud service providers and strong performance from major tech companies [6][8] - The recent China International Optoelectronic Exposition showcased significant innovations across various fields, emphasizing the importance of optical communication and related technologies [4][5] Summary by Sections Industry Overview - The communication industry is experiencing a robust growth trajectory, particularly in the optical communication segment, which is expected to outperform the market benchmark [1][6] Recent Events - The 26th China International Optoelectronic Exposition took place from September 10 to 12, 2025, featuring over 5,000 exhibitors and showcasing cutting-edge products and technologies across eight major thematic areas [3][4] Market Trends - Key trends include the focus on high-speed optical interconnects, with significant products like 400G/800G/1.6T optical modules being highlighted at the expo [4] - The report identifies three main catalysts enhancing industry sentiment: Oracle's strong performance, increased capital expenditures from North American cloud providers, and positive long-term forecasts from Nvidia regarding AI infrastructure spending [6] Investment Recommendations - The report suggests monitoring specific companies within the optical communication space, including CPO manufacturers and optical chip producers, as well as IoT module and fiber optic cable companies [8]