MARCH 2026 See Disclosure Appendix of this report for important disclosures and analyst certifications ARTIFICIAL INTELLIGENCE: THE AI INFRASTRUCTURE VALUE CHAIN Our fact base and framework for comparing fundamental upside and identifying winners across the AI value chain. The AI boom versus bubble debate has raged on since 2023. The range of outcomes could scarcely be wider, from advanced superintelligence to a crash of epic scale. While it is clearly difficult to pinpoint the exact trajectory, we see AI s ...

Core Insights - Nvidia and Broadcom are leading investments in the artificial intelligence (AI) sector, with Nvidia being the preferred buy for April due to its growth and valuation advantages [1][10]. Nvidia - Nvidia has established itself as the primary provider of AI computing units since the AI expansion began in 2023, with its GPUs being the industry standard for accelerated computing [3]. - The upcoming Vera Rubin chip architecture is expected to significantly enhance performance, requiring four times fewer chips for training and ten times fewer for inference compared to the current Blackwell generation [3][4]. - Nvidia anticipates lifetime sales of Blackwell and Rubin chips to reach $1 trillion by the end of 2027, a substantial increase from the previous expectation of $500 billion by 2026 [4]. - Nvidia's stock is currently trading at $174.36, with a market cap of $4.2 trillion and a gross margin of 71.07% [5]. Broadcom - Broadcom approaches the AI market differently by partnering with AI hyperscalers to create custom AI chips, which are optimized for specific tasks and can outperform Nvidia's GPUs in those areas [6]. - Broadcom expects its custom AI chips to generate $100 billion in revenue by the end of 2027, with its relevant division growing at a rate of 106% to $8.4 billion in the last quarter [7]. - Broadcom's stock is currently priced at $309.29, with a market cap of $1.5 trillion and a gross margin of 64.96% [8]. Market Outlook - The AI build-out is projected to continue through at least 2030, with global data center capital expenditures expected to rise to $3 trillion to $4 trillion annually by the end of that year, providing a significant growth opportunity for both companies [9]. - Nvidia's growth rate has outpaced Broadcom's in the last quarter, and it is considered cheaper from a forward price-to-earnings perspective [10][12].

Group 1: Company Performance - Sunny Optical (02382) reported an annual revenue of approximately 43.23 billion RMB, a year-on-year increase of 12.9%, and a net profit attributable to shareholders that grew by 71.9%, with a final dividend of 1.206 HKD per share, totaling around 1.301 billion HKD, achieving a dividend yield of about 25%, a recent high [1] - TCL Electronics (01070) saw a rise of over 12% after announcing a framework agreement with Sony to establish a joint venture, acquiring 51% of the new company and fully purchasing Sony's subsidiary in Malaysia for 75.399 billion JPY (approximately 3.781 billion HKD) [1] - Cambridge Technology (06166) reported a revenue of approximately 4.8234 billion RMB for 2025, a year-on-year increase of 32.07%, and a net profit of about 263 million RMB, up 58.08%, with a proposed cash dividend of 0.28 RMB per share [3] - HaiXi New Drug (02637) reported a revenue of approximately 582 million RMB for 2025, a year-on-year increase of 24.79%, and a net profit of about 177 million RMB, up 30.09%, with earnings per share of 2.55 RMB [4] Group 2: Market Trends - Aluminum stocks continued to rise, with China Aluminum (02600) up 4.09%, Nanshan Aluminum International (02610) up 3.83%, and China Hongqiao (01378) up 3.22%, following substantial production cuts from two Middle Eastern aluminum companies, which announced a 20% reduction in output by 2026 [2] - Semiconductor stocks rebounded, with companies like Lanqi Technology (06809) rising by 8.12% and Zhaoyi Innovation (03986) by 5.31%, driven by a strong performance in the South Korean market where Samsung Electronics and SK Hynix saw significant gains [2] - The aviation sector experienced a collective rebound, with China National Aviation (00753) up 6.13% and China Eastern Airlines (00670) up 6.88%, influenced by geopolitical developments in Iran [4] Group 3: Strategic Partnerships - Elysium AI (03696) surged over 10% following a significant partnership with Eli Lilly, granting Eli Lilly exclusive sales rights to a GLP-1 diabetes drug developed using Elysium's AI technology, with an upfront payment of 115 million USD and a total potential value of up to 2.75 billion USD [3]

Lari Bat/iStock via Getty Images Listen here or on the go via Apple Podcasts and Spotify Sara Awad from Tech Contrarians explains tech dynamics, geopolitical factors and increased investor scrutiny (0:35) Memory and storage: Micron, AMD, Broadcom, Nvidia, Google update (9:20) Energy through the lens of AI (20:00) Super Micro scandal, China chips (23:10) Transcript Rena Sherbill: Very happy to welcome back to Investing Experts, Sara Awad from Tech Contrarians, who we've talked to many times, most of t ...

Core Viewpoint - NVIDIA's $2 billion investment in Marvell Technology and the expansion of the NVLink Fusion ecosystem are reshaping the AI infrastructure investment landscape, prompting investors to consider which companies will benefit from this development [2]. Company Summaries 1. Marvell Technology (MRVL) - Marvell is the primary beneficiary of NVIDIA's investment, with data center revenue reaching $1.518 billion in Q3 FY2026, accounting for 73% of total revenue and growing 38% year over year [4]. - The company has over 50 new custom AI design opportunities and expects full-year FY2026 revenue growth to exceed 40% [4]. - Marvell's stock rose 12.68% on March 31, with a bullish sentiment score of 78 and an analyst consensus target of $120.50 [5]. 2. Broadcom (AVGO) - Broadcom's custom AI accelerators and Ethernet AI switching portfolio complement NVIDIA's NVLink Fusion, with AI chip revenue reaching $8.40 billion in Q1 FY2026, up 106% year over year [6]. - The company anticipates total revenue of approximately $22.0 billion in Q2 FY2026, with AI semiconductor revenue projected at $10.7 billion [6]. - Broadcom's stock has a trailing P/E of 58x and an analyst consensus target of $471.55, despite a year-to-date pullback of -15.05% [6]. 3. Arista Networks (ANET) - Arista benefits from its collaboration within the NVLink Fusion ecosystem, with FY2025 revenue reaching $9.01 billion, up 28.6% year over year [7]. - The company has a Q1 2026 revenue guidance of approximately $2.6 billion and a non-GAAP operating margin of 47.5% in Q4 [7]. - Analyst consensus target for Arista is $177.74, indicating potential upside from the current price near $122 [7]. 4. Astera Labs (ALAB) - Astera Labs is integrated into the NVIDIA Blackwell ecosystem, with Q3 FY2025 revenue growing 103.9% year over year to $230.6 million [8]. - The company reported a non-GAAP EPS of $0.49, exceeding estimates by 25.61% [8]. - Analyst consensus target of $206.75 suggests significant upside potential from the current price near $107, despite a year-to-date decline of -39.73% [8]. 5. NVIDIA (NVDA) - NVIDIA's Q4 FY2026 revenue reached $68.13 billion, up 73.2% year over year, with Q1 FY2027 guidance of approximately $78.0 billion [9]. - The company has a free cash flow of $96.58 billion for FY2026 and a remaining buyback authorization of $58.5 billion [9]. - Analyst consensus target of $268.22 implies substantial upside from the current price near $172, despite a year-to-date decline of -11.43% [9]. Industry Insights - The NVLink Fusion initiative transforms a proprietary interconnect into an open architecture, enhancing collaboration with custom silicon and networking suppliers [10]. - The focus on data center infrastructure is critical as hyperscaler capital expenditure commitments remain strong [10].

Core Insights - Broadcom's gross margin has contracted sequentially over the last four quarters, with a reported gross margin of 77% in Q1 fiscal 2026, down from 79.4% in Q2 fiscal 2025 [1][9] - The company anticipates a flat gross margin of 77% for Q2 fiscal 2026, primarily due to an unfavorable product mix as Semiconductor Solution revenues increase [2] - AI revenues are projected to reach $10.7 billion in Q2 fiscal 2026, reflecting a 140% year-over-year increase, with Semiconductor revenues expected to grow by 76% year-over-year to $14.8 billion [3][9] Financial Performance - Broadcom expects total revenues of $22 billion for Q2 fiscal 2026, indicating a 47% year-over-year growth, with the Zacks Consensus Estimate at $22.02 billion [4] - The company reported a gross margin of 93% for its Infrastructure Software segment in the latest quarter [1] Competitive Landscape - Broadcom faces significant competition in the semiconductor space from companies like AMD and NVIDIA, which are also experiencing strong growth in AI and data center revenues [5][6][7] - NVIDIA's Data Center revenues surged 75% year-over-year, while AMD's Data Center revenues increased by 39.4% year-over-year, highlighting the competitive pressures Broadcom is facing [6][7] Stock Performance and Valuation - Broadcom's stock has declined by 15.2% year-to-date, underperforming the broader Zacks Computer and Technology sector, which fell by 11.5% [10] - The stock is trading at a premium with a forward 12-month price/sales ratio of 11.44X compared to the sector's 5.48X, indicating a stretched valuation [13][14] - The Zacks Consensus Estimate for Q2 fiscal 2026 earnings is $2.35 per share, suggesting a 48.7% growth year-over-year [16]

昨日晚些时候，芯片巨头英伟达（NVIDIA）正式发布公告，宣布与美满科技（Marvell Technology）建 立深度战略合作伙伴关系，不仅通过NVIDIA NVLink Fusion™技术将美满接入自身AI Factory和AI-RAN 生态系统，更以 20亿美元的战略投资 ，为这场联盟注入重磅筹码。此次合作被业内视为AI基础设施演 进的分水岭，标志着AI芯片竞争从单一产品的对抗，正式转向生态系统与行业标准的全面博弈。 据悉，双方的合作核心围绕NVIDIA NVLink Fusion展开——这一机架级平台，打破了此前英伟达生态 的封闭性， 允许用户依托NVIDIA NVLink™生态系统，开发半定制化的AI基础设施 。根据合作协 议，美满将提供定制化XPU及与NVLink Fusion兼容的纵向扩展网络，而英伟达则输出全栈技术支持， 包括Vera CPU、ConnectX®网卡、Bluefield® DPU、NVLink互连、Spectrum-X™交换机，以及机架级AI 计算能力。这种分工协作，使得 开发定制XPU的客户能够构建与英伟达系统完全兼容的异构AI基础架 构，实现与GPU、LPU、网络及存储平 ...

Group 1: Investment Opportunities in AMD - AMD is expected to capitalize on the growing demand for data center CPUs, driven by the rise of agentic AI, which will require more CPUs for enhanced logic and workflow management [4] - The company has established two significant GPU partnerships, with initial deployments anticipated in the second half of 2026, which could lead to strong earnings guidance [5] - AMD's current supply constraints in CPUs due to increasing demand are likely to result in higher prices, further enhancing its investment appeal [4] Group 2: Investment Opportunities in Broadcom - Broadcom is positioned to benefit from a substantial growth opportunity in AI infrastructure, with projections of $100 billion in sales from custom AI chips by fiscal 2027 [6] - The company has secured a $21 billion order for Alphabet's Tensor Processing Units (TPUs), which it will deliver later this year, highlighting its strong market position [6] - Broadcom's networking business is expected to experience significant growth as the demand for networking components, such as Ethernet switches, increases alongside AI chip sales [7]

Although it's still officially in a bull market overall, the artificial intelligence (AI) investment sector may have something to say about that claim.Many AI stocks are down more than 20% from their all-time highs, knocking them out of bull market territory on an individual stock basis. However, once geopolitical tensions stabilize and investors realize that AI spending will last for many more years, some of these stocks are slated to rocket higher.Two that I have my eye on that are down at least 20% from ...

证券研究报告 科技 SEMICON China 2026：先进封装与 光互连引领 AI 半导体新周期 华泰研究 2026 年 3 月 31 日│中国内地 专题研究 科技 增持 (维持) | 黄乐平，PhD | 研究员 | | --- | --- | | SAC No. S0570521050001 | leping.huang@htsc.com | | SFC No. AUZ066 | +(852) 3658 6000 | | 陈旭东 | 研究员 | | SAC No. S0570521070004 | chenxudong@htsc.com | | SFC No. BPH392 | +(86) 21 2897 2228 | 于可熠 研究员 SAC No. S0570525030001 SFC No. BVF938 yukeyi@htsc.com +(86) 21 2897 2228 行业走势图 (13) 4 21 37 54 Mar-25 Jul-25 Nov-25 Mar-26 (%) 科技 沪深300 资料来源：Wind，华泰研究 光缆的投资机会；4）XR 眼镜技术路线逐步收敛，Agent AI 有望推 ...