Nvidia Creates a "New Anchor" AI Wave in the ascendant

● Our reporter Wu Yuhua and Liu Yingjie

The AI boom continues to be strong, and Nvidia just released various data in its first fiscal quarter report that exceeded expectations. From the perspective of A-share AI related targets, in the first quarter of this year, the performance of related listed companies benefited from AI development. Industrial Fulian 、 Zhongji Xuchuang 、 Shanghai Electric Power Co., Ltd The share prices of leading companies in AI, such as, have recently reached a record high, and northbound funds and financing funds have also actively increased their positions in AI related stocks.

Analysts said that Nvidia's better than expected financial report and positive market signals had brought a positive impact on A-share Nvidia's industrial chain, AI, computing power and other subdivisions. AI is gradually transforming from overseas innovation craze and capital expenditure to the performance of core listed companies in the industrial chain.

Strong AI boom

Nvidia, as the vane of AI, has just released its report for the first fiscal quarter of fiscal year 2025 as of April 28. All data exceeded expectations in an all-round way, making the market remain confident in AI investment. The AI boom is still strong.

Artificial intelligence technology and industry have developed by leaps and bounds, which is a strategic field of national key layout, and also a new industrial track that all regions strive to seize. Since March, Beijing, Shanghai, Chengdu and other regions have introduced support policies for AI industry development.

In March this year, 11 departments including Shanghai Communications Administration jointly issued the Implementation Plan of Shanghai Intelligent Computing Infrastructure for High Quality Development of "Computational Pujiang" Intelligent Computing Action (2024-2025), which proposed that by 2025, the scale of intelligent computing in Shanghai will exceed 30EFlops, accounting for more than 50% of the total computing power. The one-way network delay between computing network nodes is controlled within 1 ms. The advanced storage capacity in the intelligent computing center accounts for more than 50%.

On March 28, Beijing Economic and Technological Development Zone issued Several Policies on Accelerating the Creation of AI Original Industry Innovation Highland, aiming to make a major breakthrough in AI core technology, effectively support computing algorithm data, and build 10000 PFlaps of AI computing power by 2026. In order to speed up the construction of computing power infrastructure, Beijing Economic Development Zone proposed that 100 million computing power coupons will be issued every year, and enterprises can apply for computing power coupons for leasing. In order to promote the empowerment and opening of AI application scenarios, Beijing Economic Development Zone will issue 100 million yuan of model coupons every year, and subsidize enterprises that purchase large models with technology independent and controllable bases.

On May 20, the New Industrialization Promotion Conference of Chengdu was held, at which the Three Year Action Plan for High Quality Development of the Artificial Intelligence Industry in Chengdu (2024-2026) was released. The overall goal is that by 2024, the scale of Chengdu's artificial intelligence core industry will exceed 100 billion yuan, drive the industrial scale to 600 billion yuan, and reach 5500 PFlops; By 2025, the scale of core industry is expected to reach 140 billion yuan, the scale of driving industry will reach 800 billion yuan, and the scale of computing power will reach 12000 PFlops; By 2026, the scale of core industries is expected to reach 170 billion yuan, driving the scale of related industries to 1 trillion yuan, and the scale of computing power to 20000 PFlops, making Chengdu a leading city in the field of artificial intelligence in China.

Analysts believe that with the active support of policies, China's AI industry is expected to maintain a high boom.

Relevant listed companies' performance explosion

IDC predicts that by 2027, the global total investment in AI will reach 423.6 billion dollars, with a compound annual growth rate (CAGR) of 26.9% from 2022 to 2027. By 2027, China's investment in AI will reach 38.1 billion US dollars, accounting for nearly 9% of the global total investment.

Behind Nvidia's continued outperformance is the surge in demand for computing power in the AI industry. From the perspective of A-share NVIDIA's industrial chain, it can be divided into five segments: GPU, PCB industrial chain, memory chips, server cooling, optical chips/optical modules, and the performance of many related listed companies also broke out in the first quarter of this year.

In the GPU field Haiguang Information In 2023, Haiguang Information will achieve an operating revenue of 6.012 billion yuan, up 17.3% year on year; The net profit was 1.263 billion yuan, up 57% year on year. In the first quarter of this year, Haiguang Information achieved a revenue of 1.592 billion yuan, up 37.09% year on year; The net profit was 289 million yuan, up 20.53% year on year.

According to the first quarter report of Shanghai Electric Power Co., Ltd., a leading PCB enterprise, the company's operating income in the first quarter was 2.584 billion yuan, up 38.34% year on year; The net profit was 515 million yuan, up 157.03% year on year.

Memory chip Montage Technology The first quarter report shows that in the first quarter, the company achieved an operating income of 737 million yuan, up 75.74% year on year; The net profit was 223 million yuan, up 1032.86% year on year.

Server cooling Inspur Information The first quarter report shows that in the first quarter, the company achieved operating revenue of 17.607 billion yuan, up 85.32% year on year; The net profit was 306 million yuan, up 64.39% year on year.

According to the first quarterly report of CPO leader Zhongji Xuchuang, the company achieved a total operating income of 4.843 billion yuan in the first quarter, up 163.59% year on year; The net profit was 1.009 billion yuan, up 303.84% year on year.

In addition, the A-share AI leading industry Fulian achieved a revenue of 118.688 billion yuan in the first quarter, up 12.09% year on year; The net profit was 4.185 billion yuan, up 33.77% year on year.

Song Jiaji, chief analyst of communication industry of Guosheng Securities, said that AI is accelerating the transformation process from industry prosperity to report, the leading performance of optical module is accelerating to release, and other aspects of computing, such as PCB, heat dissipation, server, are accelerating performance one by one. AI is gradually transforming from overseas innovation craze and capital expenditure to the performance of core listed companies in the industry chain.

Be optimistic about AI investment opportunities

As the AI boom continues to be strong, the market performance of A-share related listed companies is also very impressive. Wind data shows that the Wind NVIDIA industrial chain index rose by 58.14% from its peak in March to its low on February 5. By the end of May 23, the market had risen 39.29% from the low point on February 5, outperforming the market.

From the situation since this year, Wind data shows that many of the constituent stocks of Wind Nvidia's industrial chain have performed well. As of May 23, Industrial Fulian has risen 69.44% since this year, and its share price has hit a new record this year; Shenghong Technology Zhongji Xuchuang has risen by more than 53% since this year, and its share price has also reached a record high this year; Tianfu Communication The shares of Shanghai Electric Power Co., Ltd. have risen by more than 47% since this year, and their share prices have all hit a record high this year.

From the perspective of capital, many of the constituent stocks of Wind Nvidia's industrial chain have won the favor of capital. Wind data shows that as of May 22, Northbound Capital has increased its position by more than 2 billion yuan this year BOE A More than 2.9 billion yuan Dawn of Zhongke Both exceeded 400 million yuan. As of May 22, financiers had bought more than 1.8 billion yuan of Industrial Fulian and Zhongke Shuguang ZTE Both exceeded 1.3 billion yuan, and net purchases of Zhongji Xuchuang and Tianfu Communication exceeded 700 million yuan.

As for the AI sector, Chen Xingwen, chief investment executive of Blackasaki Capital, told China Securities News that Nvidia's super expected financial report and positive market signals had a positive impact on Nvidia's A-share industrial chain, AI, computing power and other segments, and related companies were expected to benefit from this trend.

"Nvidia's performance exceeded expectations, especially the demand and progress of Nvidia GB200 exceeded expectations, which will benefit Nvidia's industrial chain, including computing power, liquid cooling, optical modules, copper cables and other links." He Li, the manager of Zhiyuzhishan Investment Fund, said that many domestic models are being iterated, and the demand for domestic computing power and liquid cooling will also increase. The growth of NVIDIA's data center business will also increase the demand for optical modules and copper interconnection.

　　 Guojin Securities Fan Zhiyuan, chief analyst of the electronics industry, said that the big model continued to upgrade, the demand for computing power continued to increase, and cloud manufacturers increased AI capital expenditure, driving the demand for AI chips, AI servers, optical modules, switches and other high prosperity. In the second half of this year, smart phones and AI PCs will welcome the release of many new phones, and the third quarter is expected to usher in a peak demand season. In the medium and long term, AI is expected to empower consumer electronics and bring new demand for replacement. We are optimistic about the AI driven, demand recovery and self controllable benefit industrial chain.