Summary of OCP Conference Insights and Industry Trends Industry Overview - The conference focused on the optical communication sector, highlighting significant investment opportunities in optical modules and chip companies, driven by increased capital expenditures from major firms like ByteDance, Alibaba, and Tencent [1][3][4]. Key Insights and Arguments - **Data Center Trends**: The construction of ultra-large data centers is becoming mainstream, which is expected to drive non-linear growth in the AI supply chain, including optical modules and liquid cooling solutions [1][5]. - **Decoupling in Data Centers**: A trend towards decoupling CPU, GPU, storage, and switches is anticipated to gain focus post-2027-2028, aiming for more efficient data processing and resource utilization [1][7][8]. - **Importance of Optical Interconnects**: Optical interconnects are increasingly vital in data centers, with Broadcom launching commercial 800G network cards, indicating the maturation of the 1.6T supply chain and promoting growth in network equipment and optical module markets [1][9]. - **Flexible Resource Allocation**: Data center resource allocation is evolving towards more flexible and efficient management, allowing for decentralized management of GPUs and CPUs, which enhances operational efficiency and environmental adaptability [1][10]. Emerging Technologies and Developments - **New Technology Signals**: The OCP conference revealed positive signals regarding advancements in 400G, 800G, and 1.6T modules, with ongoing technological developments boosting market confidence in AI [2][3]. - **Upcoming Google Gemini 3 Model**: The anticipated release of Google's Gemini 3 model, which boasts strong visual processing capabilities and long-context understanding, is expected to drive hardware infrastructure investments and demand growth [3][11][12]. - **Rising Demand for 1.6T Optical Modules**: The demand for 1.6T optical modules is projected to increase significantly in 2026, supported by advancements in NVIDIA's LOBBY architecture and TSMC's capacity enhancements [3][13]. Investment Opportunities - **Core Domestic Companies**: There are strong investment opportunities in domestic core companies such as ZTE and Ruijie Networks, which are expected to benefit from the ongoing trends in the optical communication sector [1][4]. - **Supply Chain Beneficiaries**: Companies like Zhongji Xuchuang and Xinyi Communication are likely to benefit from the rising demand for 1.6T optical modules and the maturation of related technologies [3][13]. Additional Noteworthy Updates - **NPO Industry Developments**: The NPO (Non-Profit Organization) sector continues to see robust orders, particularly for ultra-small MPO connectors, which are essential for high-density access in data centers [14]. - **Overall Market Outlook**: The overall outlook for the industry remains positive, with increasing demand for 1.6T optical modules and no apparent ceiling in sight, despite stock price adjustments due to international conditions [15].