According to the CITIC Construction Investment Research Report, the AI computing power industry chain has entered a period of deep explosion where downstream demand is forcing upstream production capacity. Amazon's annual AI revenue in the first quarter exceeded 15 billion US dollars, proving that the cloud giant has established strong commercial monetization capacity and certainty on the AI application side; while the upstream core optical component giant Lumentum's production capacity may soon be sold out ahead of schedule until 2028, which reveals the shortage of underlying hardware support and the length of the construction cycle. This kind of closed loop in the current AI industry has formed the strongest boom cycle, from the growth rate of cloud software revenue to hardware infrastructure for several years. CITIC Construction Investment maintains its judgment on the high prosperity of the global optical communications industry. It is expected to maintain a high growth trend over the next five years and continue to recommend the optical communications sector.

According to the CITIC Construction Investment Research Report, the AI computing power industry chain has entered a period of deep explosion where downstream demand is forcing upstream production capacity. Amazon's annual AI revenue in the first quarter exceeded 15 billion US dollars, proving that the cloud giant has established strong commercial monetization capacity and certainty on the AI application side; while the upstream core optical component giant Lumentum's production capacity may soon be sold out ahead of schedule until 2028, which reveals the shortage of underlying hardware support and the length of the construction cycle. This kind of closed loop in the current AI industry has formed the strongest boom cycle, from the growth rate of cloud software revenue to hardware infrastructure for several years. CITIC Construction Investment maintains its judgment on the high prosperity of the global optical communications industry. It is expected to maintain a high growth trend over the next five years and continue to recommend the optical communications sector.