CITIC Securities: The main theme of domestic computing power is clear; leading companies' performance is expected to accelerate.
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CITIC Securities: Significant fluctuations will not alter the AI supercycle; emphasize the importance of domestic computing power as a "Plan B".
According to Mars Finance, CITIC Securities points out that news of Meta's plan to lease out some of its computing power has once again triggered market concerns about computing power oversupply. This, coupled with concerns about cloud vendors' cash flow pressures, the continued rise in upstream prices, the slowdown in Capex growth, and overcrowding in AI transactions in recent months, is the main reason for the significant volatility in tech stocks. In the short term, Meta's move is primarily aimed at revitalizing its existing, outdated computing power assets. Considering its continued development of advanced models and investment in next-generation computing hardware, leasing out computing power is not contradictory to further increasing its investment in computing power. Furthermore, since computing power rental fees have continued to rise recently, concerns about computing power oversupply are unfounded. This round of tech stock adjustments is more of a deleveraging and rebalancing process in the recent global liquidity tightening environment, rather than a reversal of the AI industry trend. For the medium to long term, it is crucial to pay close attention to whether the next few months will see a similar breakthrough in AI capabilities as seen with OpenClaw and Coding Agent at the beginning of the year. In addition, it has been observed that after overseas AI assets entered a phase of high crowding, high correlation, and high volatility, international funds are beginning to seek differentiated sources of return. Domestic computing power with differentiated value, dubbed "Plan B," remains resilient and is expected to attract foreign investment. With the earnings season approaching, we recommend focusing on sub-sectors with high earnings certainty and reasonable valuations: In terms of growth prospects, we recommend domestic FAB (Featured Adhesives and Materials) and equipment sectors with positive narratives, as well as the optical communication sector with relatively low valuations; in the price increase chain, segments with high AI exposure and those that have already experienced price increases have a higher probability of realizing their earnings gains, such as memory and upstream PCB industries. (Cailian Press)
Goldman Sachs released a report on China's AI computing power, predicting that domestically produced chips will account for over 50% of the market share by 2026.
According to a Goldman Sachs report, "China AI Computing Power," published by P Equity Research, China is accelerating the construction of its nationwide computing network. Related infrastructure projects are expected to attract 7 trillion yuan in investment by 2026, with data center investment reaching approximately 2 trillion yuan over the next five years. Currently, capital and technology are shifting massively to computing hubs in western China, while data centers in first-tier cities are transforming to focus on ultra-low latency computing, edge nodes, and AI inference. Although gigawatt (GW) clusters containing more than 100,000 chips are still scarce in China, in typical GW-level computing parks, workloads already consist primarily of inference (accounting for over half), along with training and full-stack R&D. The report predicts that by 2026, the market share of domestically produced AI accelerator chips is expected to exceed 50%. Huawei and Alibaba's Pingtouge lead the domestic camp with 20% and 7% market share respectively, but Nvidia currently maintains its overall market dominance with a 55% share. In terms of cost and performance, domestically produced chips have 40% to 50% lower capital expenditure per unit of IT power consumption compared to imported chips. However, due to the performance gap, their capital expenditure per unit of computing power is 2 to 4 times that of imported chips, and the computing power generated per unit of power consumption is only 10% to 30% of that of imported chips. In addition, the daily token output of Huawei's 910B/910C servers is about one-sixth to one-third of that of NVIDIA's H800, resulting in API profit margins based on this hardware lagging significantly behind those of competitors using NVIDIA hardware.
China Galaxy Securities: Structural Breakthrough Focuses on Science and Technology Innovation Manufacturing; Main Theme Shifts to Three Major Directions: Semiconductors, AI, and Aerospace.
According to a research report released by China Galaxy Securities, the main theme within the technology and manufacturing sector has clearly shifted from "AI + New Energy" in May to "Semiconductors + AI + Aerospace" in June. Thematic rotation has slowed compared to May, and the market's main focus is more concentrated. Considering macroeconomic, style, and industry signals, the current market presents a pattern of "macroeconomic pressure + clear structural themes." While the overall environment constrains risk appetite, funds have reached a high degree of consensus on manufacturing upgrades, energy security, and AI industry trends, continuously flowing into the science and technology innovation, semiconductor, aerospace, and manufacturing sectors, making them the areas with the strongest relative return potential in the market. In terms of style, the growth sector continues to dominate, which corroborates the structural strength of the science and technology innovation and manufacturing themes, together forming the core allocation logic at this stage. (Cailian Press)
Industrial Securities: The news regarding Meta's external leasing and sales of computing power should not be interpreted overly pessimistically as a sign of computing power surplus.
According to Mars Finance, on Wednesday, news that Meta plans to sell its surplus AI computing power triggered a sharp correction in global AI hardware and high-flying technology stocks. Xingye Securities believes that the news regarding Meta's external leasing and sale of computing power should not be interpreted overly pessimistically as a surplus of computing power/a comprehensive slowdown in Capex, because (1) this is not new news; there were related reports in May of this year; (2) Meta is a special case among hyperscalers; its toC-oriented business means its AI monetization capabilities mainly rely on advertising, and its exploration of cloud business can improve shareholder returns and cash flow; (3) Meta still has a computing power gap; this week, it was just reported that Google restricted its access and Meta signed an agreement with Crusoe; (4) hardware demand comes from inference, not from inflation on the training side. (Cailian Press)
Yitian Intelligent: Subsidiary plans to purchase servers and related equipment for no more than 550 million yuan, mainly for providing computing power services to customers.
According to Mars Finance, Yitian Intelligent (300911.SZ) announced that its wholly-owned subsidiary, Gansu Yisuan Intelligent Technology Co., Ltd., plans to purchase servers and supporting equipment from multiple suppliers. The total contract amount is expected to not exceed 550 million yuan, mainly for providing computing power services to customers. (Cailian Press)
Hongming Electronics: The company's MLCCs, feedthrough capacitors, ceramic wafers, electronic pastes, and ceramic packaging shells are all compatible with high-reliability equipment scenarios for high-end domestic computing power platforms.
Mars Finance reports that Hongming Electronics stated on its interactive platform on the 8th that, in addition to MLCCs, the company's feedthrough capacitors, ceramic wafers, electronic pastes, and ceramic packaging shells are all suitable for high-reliability equipment scenarios in China's high-end domestic computing power platforms. Currently, these related businesses account for a relatively small percentage of revenue, and the company will steadily advance market expansion according to its established strategy. (Cailian Press)