Looking ahead to 2026, East Money Securities released a research report stating that as global cloud providers further increase capital expenditures, North America's computing power sector will maintain strong growth, while domestic computing power chains are expected to gain momentum. The development of AI applications may accelerate volume expansion in edge-side AI supply chains. The firm believes AI hardware technology remains the core investment theme, alongside high-dividend telecom operators. Key focus areas include optical modules, copper interconnects, switches, thermal management equipment, power infrastructure, IDC facilities, edge AI, robotics, and telecom-related stocks.
**North America’s Computing Power ROI Emerges; Open Interconnect & Power Efficiency Shape Data Center Trends** AI-driven training and inference demand in North America has validated the commercial viability of computing power investments. Cloud providers' capital expenditures in the region may exceed $600 billion by 2026, sustaining infrastructure growth: 1) Scale-up strategies expand market opportunities, with optical interconnects gaining traction. Open, standardized cabinet-level ecosystems are forming, while Ethernet switching systems gain ground. 2) Power supply is critical as single-GPU and rack power consumption rises in North America. Liquid cooling solutions and 800V DC/SST technologies present market opportunities amid innovation.
**Domestic Computing Power Models Evolve; Infrastructure Offers High Elasticity** This year, China’s AI models have diversified and upgraded, with leading cloud providers and telecom operators ramping up investments in computing power. Despite slower-than-expected AI infrastructure growth in 2025 due to NVIDIA chip restrictions, breakthroughs in domestic chips could drive rapid expansion in 2026. Key insights: 1) Strong IDC demand and supply-side optimization may signal a cyclical turnaround, offering long-term value. 2) Growing model parameters and inference needs will accelerate AIDC deployment, benefiting optical modules, liquid cooling, switches, and power equipment.
**Edge AI Supply Chain Gains Momentum; 2026 Volume Growth Expected** Policy support and industry collaboration are propelling edge AI toward large-scale adoption. China’s "AI+" initiative targets over 70% penetration of next-gen smart devices by 2027, rising to 90% by 2030. Upstream advancements in chips, modules, and end-device innovations like Meta’s AI glasses may accelerate market growth. By 2026, "policy guidance + ecosystem maturation + robust demand" could solidify edge AI’s foundation, shifting focus from thematic hype to earnings realization.
**Telecom Operators Prioritize Stability with Rising Dividends** Operators are navigating reduced capital expenditures, business transformation, and higher dividend yields. Their resilient core telecom services, cost optimization, and AI-driven efficiency support profit growth. Lower capex may boost cash flow, while emerging businesses unlock new revenue streams. With stable earnings and rising payouts, operators offer compelling value in low-rate environments, warranting revaluation.
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