CITIC Securities: Clear trend in the AI industry, continue to be optimistic about the optical communication sector

The study report from CITIC Securities states that the explosive demand for AI computing power is driving the upgrade of the optical communication industry, with overseas cloud providers and TSMC continuing to expand their capital expenditures, confirming the strong demand for AI infrastructure and bringing about vigorous demand for high-speed optical modules. Although there is a short-term supply gap of materials such as high-speed optical chips, upstream manufacturers are actively expanding production, and the penetration rate of silicon optical solutions is increasing, with the supply chain bottleneck expected to ease. In terms of technological iteration, NPO, with its advantages of low power consumption, high bandwidth, and maintainability, is becoming a key transitional solution at the Scale up level, with leading companies already laying the groundwork and driving the industry towards a more efficient optical interconnection architecture. CITIC Securities is optimistic about the development potential of domestic leading companies in the optical communication industry. The communication industry is maintained at a "stronger than the broader market" rating.