According to the Galaxy Securities Research Report, the front-end and back-end network networking of computing power clusters in the AI era is driving demand for a large number of switches. 1.6T port switches are expected to start expanding in 2027. The WAIC 2026 supernode will become the absolute protagonist. The internal interconnection bandwidth evolves rapidly, and every time the port rate is iterated, the value of a single switch increases, supporting profitability. At the same time, the latency requirements for scale-up switches have been reduced from the μS level to the 100ns level. The design difficulty and verification cycle far exceeds that of traditional products, giving existing players continuous bargaining power, forcing the “stuck neck” link in the industry chain — domestic replacement of switching chips to accelerate, and superimposing the performance of leading overseas switches to achieve catalysts. It is recommended to focus on domestic switch+switching chip leaders.

According to the Galaxy Securities Research Report, the front-end and back-end network networking of computing power clusters in the AI era is driving demand for a large number of switches. 1.6T port switches are expected to start expanding in 2027. The WAIC 2026 supernode will become the absolute protagonist. The internal interconnection bandwidth evolves rapidly, and every time the port rate is iterated, the value of a single switch increases, supporting profitability. At the same time, the latency requirements for scale-up switches have been reduced from the μS level to the 100ns level. The design difficulty and verification cycle far exceeds that of traditional products, giving existing players continuous bargaining power, forcing the “stuck neck” link in the industry chain — domestic replacement of switching chips to accelerate, and superimposing the performance of leading overseas switches to achieve catalysts. It is recommended to focus on domestic switch+switching chip leaders.