Investment Rating - The report maintains a "Positive" investment rating for the communication industry [12]. Core Insights - The communication sector saw a 3.00% increase in the 37th week of 2025, ranking 7th among major industries, and a 63.01% increase year-to-date, ranking 1st [2][7]. - Oracle's cloud business is experiencing rapid growth, with a 12.2% year-over-year revenue increase to $14.93 billion in FY26Q1, and a significant 359% increase in remaining performance obligations, surpassing $455 billion [8]. - Nvidia's Rubin CPX focuses on long-context processing, enhancing performance for large language models (LLMs) with a notable increase in attention processing speed [9]. Summary by Sections Market Performance - The communication sector's performance includes a 3.00% increase in the latest week and a 63.01% increase since the beginning of the year, leading the industry rankings [2][7]. - Top gainers in the sector include Cambridge Technology (+25.6%), Kehua Data (+25.5%), and Sanwei Communication (+22.4%) [7]. Oracle's Cloud Business - Oracle's cloud revenue reached $7.19 billion in FY26Q1, a 26.1% year-over-year increase, with cloud infrastructure revenue growing by 52.1% [8]. - A landmark $300 billion power procurement contract with OpenAI is set to commence in 2027, marking a significant milestone in cloud computing [8]. Nvidia's Innovations - Nvidia's Rubin CPX offers 30 PFLOPs of computing power for long-context inference, significantly improving LLM applications [9]. - The Vera Rubin NVL144 CPX platform integrates multiple components to enhance processing capabilities, expected to be commercially available by the end of 2026 [9]. Investment Recommendations - The report recommends several companies across various segments, including: - Telecom operators: China Mobile, China Telecom, China Unicom - Optical modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication - Liquid cooling: Yingweike - Fiber optic cables: Fenghuo Communication, Hengtong Optic-Electric - Domestic computing: Runze Technology, Guanghuan New Network - AI applications: Boshi Jie, Heertai, Tuobang Co., Yiyuan Communication - Satellite applications: Huace Navigation, Haige Communication [10].

Industry Investment Rating - The investment rating for the industry is "Outperform the Market" and is maintained [1] Core Insights - The report highlights a significant growth in AI-driven cloud business, with Oracle's cloud revenue reaching $7.2 billion, a year-on-year increase of 28% [4] - The demand for computing power infrastructure is expected to continue expanding due to the explosion of AI model requirements and the intelligent transformation across various industries [9] - Major cloud service providers are increasing their capital expenditures significantly, with Microsoft planning to raise its capex to over $30 billion in FY2026 [6] Summary by Sections Industry Overview - The closing index for the industry is 5267.07, with a 52-week high of 5841.52 and a low of 2855.49 [1] Performance of Relative Indices - The report indicates a relative performance trend of the computing industry compared to the CSI 300 index, showing fluctuations over the specified periods [3] Recent Developments - Oracle's first fiscal quarter revenue was $14.93 billion, with a cloud business revenue of $7.2 billion, reflecting a 28% increase year-on-year [4] - Coreweave is experiencing a surge in demand for computing power, with a current capacity of approximately 2.2GW and a significant increase in long-term contracts [5] Capital Expenditure Trends - Major international players like Microsoft, Google, Amazon, and Meta are increasing their capital expenditures, with Microsoft planning $24.2 billion for Q2 FY2025, a 27% year-on-year increase [6] - In China, companies like Alibaba and Tencent are also ramping up their investments in AI and cloud infrastructure, with Baidu's capex reaching 3.8 billion yuan, a 79.41% year-on-year increase [8] Investment Recommendations - The report suggests focusing on various sectors including cloud computing, AI and data, AI agents, and AI computing power, with specific companies highlighted for potential investment opportunities [9]