Investment Rating - The report maintains a "Buy" rating for key companies in the optical circuit switching (OCS) technology sector, including Zhongji Xuchuang and Xinyi Sheng [13]. Core Insights - Optical Circuit Switching (OCS) technology represents a strategic evolution from traditional "connection" functions to intelligent "switching" capabilities, addressing bandwidth bottlenecks and power consumption issues in traditional electrical switching [28]. - OCS technology is becoming a competitive battleground for optical manufacturers, with various companies actively positioning themselves based on their technological advantages [30]. - The relationship between OCS and optical modules is complementary rather than competitive, with leading companies still holding core opportunities in the OCS market [31]. Summary by Sections Investment Strategy - The report suggests focusing on the computing power sector, particularly in optical communication, recommending companies such as Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication [10][18]. - It emphasizes the importance of the supply chain forming around OCS technology, with many companies eager to enter this emerging field [34]. Market Overview - The optical communication sector is experiencing growth, with significant investments from major players like Google, which has invested between $500 million to $1 billion in OCS technology over the past five years [32]. - The report highlights the performance of the communication sector, noting that quantum communication has shown the best performance among sub-sectors [25]. Technology Overview - OCS technology allows for direct optical switching without the need for optical-electrical conversion, significantly reducing hardware costs and power consumption [29]. - Various implementation technologies for OCS include MEMS, Digital Liquid Crystal (DLC), and Direct Beam Steering (DBS), each with unique advantages and applications [32]. Key Companies and Recommendations - The report recommends monitoring leading companies in the optical communication space, including Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication, as well as related sectors such as liquid cooling and satellite communication [10][18]. - It also suggests attention to domestic computing power supply chains, particularly in the liquid cooling segment [33].