CSC research reports indicate that in the first three quarters of 2026, the telecommunications sector's revenue and net profit attributable to parent companies grew 6.78% and 8.32% year-on-year, respectively, with growth further accelerating in the third quarter. Notably, the testing instruments, GPU/ASIC, and cable segments saw net profit attributable to parent companies surge by 1160%, 720%, and 214%, respectively, during the first three quarters, while the PCB upstream segment grew 661% in the third quarter—reflecting continued release of demand driven by AI computing power and supporting infrastructure. In the third quarter, public funds held 464.567 billion yuan in market value in the telecommunications industry, maintaining a high proportion of holdings concentrated in leading AI optical communication companies. As of October 30, the telecommunications index PE-TTM stood at 34.1x, with the earlier valuation premium now significantly digested, and the market is paying closer attention to earnings delivery. North American CSPs continue to ramp up investment in AI infrastructure. CSC remains bullish on the North American and domestic AI computing power industry chains over the long term and recommends focusing on high-speed optical interconnection, GPU/ASIC, and supporting infrastructure.