Galaxy Securities: The expansion of reasoning computing power resources is urgently needed. The computing power industry is still in a relatively high boom period.

Galaxy Securities research report pointed out that during the Spring Festival, the domestic communication industry developed comprehensively. 5G-A, satellite internet, 6G, and optical communication industries were relatively less affected by the holiday. Companies related to AI intelligent agents on the application side, such as Zhifu looking for computing power partners, and Dou Bao temporarily suspending video call functions on February 16, all reflect the current shortage of computing power. The continued development of AI applications is driving the continuous increase in computing power scale. Overseas news mainly focused on data center construction and the route of GPU-XPU. NVIDIA's current leading position in the industry is solid, and the acquisition of Groq technology licensing agreement further seizes the inference hardware market. Before the holiday, the market's general concern about the communication industry mainly lies in the pace of resumption of work and production of optical communication companies in the first quarter, as well as the capital expenditure and CPO landing pace of the computing power industry in 2027. Combining the development of computing power applications during the Spring Festival and the capital expenditure plans for 2026 of overseas cloud vendors before the holiday, as well as the order situation in the optical communication industry chain, the computing power industry is still in a high prosperity cycle. The optical communication industry chain in China actively resumed work and production during the Spring Festival, and the short-term impact of the holiday on order fulfillment is expected to be minimal. The collaboration between META and NVIDIA is expected to accelerate the popularization of CPO.