Group 1 - The two best-performing stocks among the "Seven Giants" as of December 24 are Nvidia and Alphabet, with Nvidia's stock up approximately 36% to $188 and Alphabet's stock up about 65% to $315 [1] - Optimists believe that the tech stocks in the US will not experience a bubble in 2026, with an expected overall increase of over 20%, particularly for Nvidia and Alphabet, which have projected P/E ratios of 23x and 27x respectively [1] - Nvidia's stock has faced pressure due to a slowdown in AI spending and competition, but market confidence remains high despite these challenges [1] Group 2 - Nvidia's recent Blackwell chip and the upcoming Rubin chip are highly anticipated, with expectations that OpenAI will release the next-generation GPT model early next year, which may be trained using Blackwell [2] - The export outlook for Nvidia's GPUs to the Chinese market is more optimistic than before, with the H200 chip expected to bring additional benefits in 2026 [2] - Alphabet's Gemini 3.0 model, trained on custom chips developed with Broadcom, has drawn investor attention, but the market's focus is more on competition with OpenAI rather than direct threats to Nvidia's GPUs [2] Group 3 - Alphabet has developed its own custom AI chips (TPUs) over the past decade, which provide cost advantages in cloud computing and enhance the training of the Gemini large language model [3] - Gemini's market share is expected to grow rapidly in 2025, increasing from nearly zero to 13%, contributing to a significant rise in Alphabet's stock price [3] - Morgan Stanley estimates that deploying 500,000 TPUs could generate approximately $13 billion in annual revenue for Alphabet, with expectations of renting out 5 million TPUs by 2027 and 7 million by 2028 [3]

Summary of Key Points from Conference Call Industry Overview - The conference highlighted the rapid development of AI technology and its impact on the optical module market, with the OCPR conference actively promoting related technologies [1][2] - The satellite internet sector is experiencing accelerated investment and construction, with multiple companies launching new satellite constellations [1][5] - Liquid cooling technology is gaining attention, with significant profit contributions expected from overseas markets in the coming year [1][6] Company-Specific Insights ZTE Corporation - ZTE's switching chips and CPUs are currently undervalued, with the next-generation 51.2T switching chip and 5nm Summit CPU expected to significantly increase revenue and profit upon mass production in 2026 [1][3] - ZTE's current valuation is around 20 times earnings, with potential to rise to 30 times as new product sales scale up [3] - The company has shown strong performance in the optical communication sector, with a notable increase in net profit for its subsidiary, exceeding 30% year-on-year [3][13] Yilink Network - Yilink Network's third-quarter performance showed growth, with expectations of over 3 billion profit in 2026, corresponding to a PE ratio of less than 15, making it a stable investment option [1][8] Invek - Invek's third-quarter results indicated an increase in gross margin and net profit, with a focus on profitability despite a slowdown in revenue growth [1][6] Market Trends - The optical module market is expected to see an increase in demand and pricing in 2026, despite recent volatility due to US-China trade tensions [2] - The global liquid cooling market is projected to reach a scale of 100 billion RMB, with companies like Invek, Shenling, and Yishite being key players [1][6] - The overseas computing sector is rapidly evolving, with the OCP conference setting hardware update goals that reflect increasing demands for power, connectivity, and liquid cooling [1][9] Technological Developments - The OCP conference established a new organization to promote standardization in multi-modal technology, which is expected to expand significantly in 2026 [1][10] - OpenAI has updated its shopping feature and plans to release new products in December, indicating ongoing advancements in AI applications [1][12] - Google's model testing has progressed, with the upcoming release of the Gemini 3.0 model being closely monitored [1][14] Conclusion - The conference underscored the robust growth potential in the optical communication, satellite internet, and liquid cooling sectors, with specific companies like ZTE and Yilink Network positioned for significant gains in the near future [1][3][8][13]