Galaxy Securities: High computing power demand drives structural upgrade and value reconstruction of optical modules.

Galaxy Securities research report believes that the current optical communication industry is undergoing a profound structural change driven by the surge in demand for AI computing power. The industry's prosperity has shifted from traditional cyclical fluctuations to a long-term expansion channel supported by technological iteration and capital spending resonance. Major global cloud vendors and AI companies continue to increase their investment budgets for computing power infrastructure, directly driving non-linear growth in demand for high-speed optical modules. The report predicts that starting in 2026, the penetration rate of high-speed products in the field of data communication is accelerating, with 1.6T products entering mass production cycles. The high demand growth on the demand side provides a solid fundamental support for capacity release and profit realization in various links of the industry chain; as demand growth certainty continues to improve, capacity release has also improved seasonally since the beginning of the year. Although the current shortage of upstream raw materials still exists, the shortage may continue to narrow as the process of domestic substitution deepens.