Artificial intelligence capital expenditure still has several times the growth potential

The fundamentals support strong sectors, with the Communication ETF (515880) and the Semiconductor Equipment ETF (159516) remaining key focuses for the future. On March 26, the Communication ETF and Semiconductor Equipment ETF maintained fluctuations in the morning and experienced a pullback in the afternoon along with the broader market.

Source: Wind

Regarding optical modules, based on artificial intelligence capital expenditures, the four major cloud providers in North America are expected to spend around $650 billion by 2026, with several times of growth potential to follow. AI represents a grand epic revolution that is expected to drive sustained growth in the supply chain. At the 2026 OFC conference, several optical module manufacturers indicated that the shipment volume of 800G/1.6T optical modules in 2025 is projected to be between 40 million and 45 million, with an expected doubling to 80 million to 90 million in 2026, and then doubling again to 150 million to 160 million in 2027, with the 1.6T accounting for around half. Therefore, the market size for optical modules is expected to double again by 2027. Currently, the valuations of major optical module manufacturers for next year are not considered expensive, and the Communication ETF, supported by strong performance, has recently shown strong resilience against declines, highlighting the market’s strong recognition.

In AI, computing power, storage capacity, transportation capacity, and electricity are inextricably linked. In the context of data centers, computing power is primarily provided by computing chips, where billions of transistors on semiconductor chips rapidly complete data calculations between on and off states. This process requires rapid data exchange, continuously reading and writing data from storage, which increases storage demand. Additionally, a vast transportation and exchange network coordinates hundreds of thousands of GPUs to jointly handle massive computation tasks for large models. All the energy in this process comes from electricity. Thus, the high prosperity of transportation capacity also constitutes a positive signal for computing power and storage capacity. The Semiconductor Equipment ETF, which benefits simultaneously from the expansion of advanced processes and storage capacity, is worth paying attention to, especially after a considerable pullback, with upcoming listings and order-driven catalysts enhancing its cost-effectiveness.

Moreover, the SEMICON China 2026 conference will be held from March 25 to 27 at the Shanghai New International Expo Center, marking the largest and most comprehensive semiconductor industry event in the Asia-Pacific region. This year’s event, themed “Cross-Border Global, Heart and Core Connected,” covers topics such as design, manufacturing, packaging, testing, equipment, materials, and AI chips, with an exhibition area exceeding 90,000 square meters. In addition to participation from domestic leading companies, there will also be major overseas enterprises attending, making it a gathering of prominent figures and impressive equipment. Friends interested in semiconductor equipment can take this opportunity to have a visual feast.

Source: Semiconductor Industry Insight

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Daily Economic News

Editor: Zhang Xiaobo

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