The Zhitong Finance App learned that Citi said that the capital expenditure of the four major US cloud vendors increased strongly by 79% year-on-year in the second quarter and slightly raised the full-year guidance, indicating that the demand outlook has clearly been extended to 2028, providing structural benefits to AI infrastructure supply chain companies.

The bank said that China's optical communications sector may have layout opportunities before and after the release of results for the first half of 2026. Recent catalysts include CIOE (China Optical Expo), Yunqi Conference, and ECOC (European Optical Communications Exhibition) in September

The bank also reconfirmed the 2027 industry outlook, the increase in CPO/NPO (co-packaging/near-package optics) visibility, and a strong half-year recovery in shipments in the second half of the year. These favorable factors will all help the sector usher in a revaluation.

The bank raised the capital expenditure forecasts for the four major US cloud service providers by 4.5% and 15.1% for 2026 and 27, respectively, to reach 754 billion US dollars and 1.112 trillion US dollars.

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