0726 Technology Meeting Minutes

English summary

Electronics: The current AI computing power market is in an adjustment period due to the decline of overseas tech stocks. Compared with overseas, domestic computing power manufacturers have higher investment growth and unaffected cash flow. We recommend the domestic computing power industry chain: #chips, Huawei supply chain; domestic server supporting, equipment and materials, etc. Currently, overseas computing power stock prices have pulled back, and institutional holdings concentration has decreased compared with the second quarter report. We are optimistic about the fundamentals of overseas computing power. After overseas stock prices stabilize, we expect room for subsequent price recovery. Communications: Google's performance meeting had better-than-expected capex, and the long-term obligation of 8110e USD reflects sufficient confidence in Google's development. The main reasons for the stock price decline: 1) 26Q2 FCF was -59e (slightly below expectations); 2) model-side progress statements were insufficient. Next week, continue to pay attention to events such as Changxin listing, North American CSP earnings, and Innolight H-share listing. For rebound core stocks, continue to firmly recommend #Zhongji Innolight & Eoptolink (positive on 27-28 NPO, 2.4T volume expansion, semiconductor capability accumulation), #Accelink (Q3 new plant capacity release, active material preparation), Lianxun Instrument, Yuanjie Technology, Dongshan Precision, Tianfu Communication; ...