CITIC Securities: The optical communication industry is expected to maintain high growth in the next five years.

Citic Securities Research Report points out that the AI computing power industry chain has entered a deep explosion phase driven by downstream demand forcing upstream capacity. In the first quarter, Amazon's annualized AI revenue surpassed $15 billion, demonstrating that cloud giants have established a strong ability and certainty for commercial monetization on the AI application front. Meanwhile, upstream core optical component giant Lumentum's capacity may soon be sold out ahead of 2028, revealing the tightness in foundational hardware support and the long construction cycle. This trajectory from rapid growth in cloud software revenue to multi-year order locks for hardware infrastructure forms the most solid prosperity cycle currently in the AI industry. Citic Securities maintains a positive outlook on the global optical communications industry, expecting it to sustain high growth over the next five years and continues to recommend the optical communications sector.