The current market focus is still on AI infrastructure, revolving around related themes. Based on the massive capital expenditures by North American giants, we analyze the value of AI infrastructure, the dividends of various modules, and technological advancements to select different companies. The simultaneous increase in volume and price driven by related materials, modules, business, and production capacity is used to elevate company valuations. The certainty in this area is greater than in other sectors.

Based on GPU interconnectivity, there's the scale-up and scale-out of optical modules, and the simultaneous increase in volume and price of hollow-core optical fiber based on transmission rates. Based on data storage, DRAM, HBM, and NAND are driving simultaneous increases in volume and price. We are currently in a cycle of undersupply, with most capacity expansion cycles lasting two years or more. The main contradictions remain the memory wall, power wall, and transmission wall. The positioning and value of related targets within the ecosystem determine their valuation. Currently, we are looking forward to Google's conference next week to see if it will bring advancements in memory pools and groundbreaking applications for all-optical switching. We are currently seeing some bearish views on the market, but if full marks are 10, I feel the infrastructure wave has only reached a level of 3-4. The giants' spending is still increasing, and suppliers are still expanding production. Continuously monitoring the capital expenditures and financial status of cloud giants ensures an unbeatable position.