China Galaxy Securities: Demand + Policy Driving Token Index to Exponential Growth, Industrial Chain to Benefit Greatly from Collaborative Development

China Galaxy Securities released a research report stating that from overseas ChatGPT and Sora to domestic Wenxin Yiyan and Kimi, AI applications are evolving from text generation multimodal to Agent intelligent entities. The exponential growth in token consumption per interaction has directly impacted the explosive demand for training and inference computing power centered around GPU, especially for more sustained and widespread inference needs. Currently, major global economies view computing power as a strategic resource. China's "Eastern Numerical West Algorithm" project, national integrated computing power network construction, and "Artificial Intelligence+" initiative have systematically promoted the scale and intensification of computing power infrastructure development. With the increasing demand for inference, the amount of token consumption is expected to witness significant growth, driving the industry chain to accelerate further, particularly in the fields of AIDC, operators, optical fiber cables, and optical modules. Key points from China Galaxy Securities are as follows: AIDC: The driving force lies in the intensive iteration of global large-scale technology and the explosive growth in token calls Technology giants at home and abroad are heavily investing in computing power infrastructure. The AIDC industry is undergoing systematic restructuring around high-density GPU computing clusters. AIDC is accelerating towards the consolidation of super-large clusters with hundreds of thousands of cards, with a single cabinet power density breaking through tens or even hundreds of kilowatts. Through high-density and green new forms, AIDC has become the core physical foundation supporting the AI era. Operators: Leveraging their nationwide coverage and rich computing power node layout, operators are key players in connecting dispersed computing power and breaking geographical barriers with their "cloud-network integration" capabilities AI computing power is transitioning from single-point construction to cross-regional cluster scheduling, driving a massive demand for low-latency interconnection. Operators are now focusing on "computing power operations", transforming themselves from traditional pipeline providers to core organizers of intelligent computing power services by creating highly reliable and low-jitter data center interconnection networks. The depth and breadth of operator layouts with tokens are increasing, which may activate the operator's existing AIDC assets. In the optical fiber cable industry, the large-scale construction of AIDC brought by tokens upgrades optical fibers from ordinary connecting consumables to the core basis of computing power networks To meet the ultra-low latency requirements for parameter synchronization between GPUs, network architecture must adopt a non-blocking full-mesh mode, leading to a rapid increase in the consumption of optical fibers in the single cabinet, directly driving the comprehensive capacity expansion and upgrade of backbone networks, metropolitan area networks, and DCI networks. To support EB-level massive data transmission, the demand for ultra-low loss, large effective area high-grade optical fibers for new construction and replacement is soaring. Constrained by rigid constraints in upstream optical bar production expansion, the optical fiber industry is experiencing a period of high prosperity of price and quantity rising. Optical modules: As GPU computing power experiences exponential growth, data transfer rate has become the biggest bottleneck determining the efficiency of computing power clusters To match the higher throughput of the new generation of AI chips, the iteration cycle of optical modules is continuously shortened, and the industry is accelerating its evolution towards ultra-high speeds of 1.6T to 3.2T from 400G/800G. New technologies such as CPO, silicon optics, and LPO are gradually being used on a large scale. As the core device to ensure the linear acceleration ratio of computing power clusters, high-speed optical modules are entering a period of technological generation shifts and resonating with explosive demand. Investment recommendations It is recommended to focus on companies in the AIDC industry such as Shanghai AtHub, Range Intelligent Computing Technology Group, RunJian Co., Ltd., Beijing Sinnet Technology, and Dawei Technology (Guangdong) Group; operators such as China Mobile Limited, China United Network Communications, and China Telecom Corporation; optical fiber cable companies such as Yangtze Optical Fibre And Cable Joint Stock, Hengtong Optic-Electric, and Jiangsu Zhongtian Technology; optical module and optical device companies including Zhongji Innolight, Eoptolink Technology Inc., Accelink Technologies, Hgtech, Cig Shanghai, Optowide Technologies, Yuanjie Semiconductor Technology, Henan Shijia Photons Technology, Suzhou TFC Optical Communication, Focuslight Technologies Inc., T&S Communications, and others. Risk warning: Risks of AI application development not meeting expectations, risks of downward capital expenditures from cloud vendors, risks of industrial technological developments falling short of expectations, etc.