Nvidia(US:NVDA) Sou Hu Cai Jing·2025-11-19 01:33Core Viewpoint - The performance of the computing power sector has been relatively strong, driven by optimism about AI applications, while concerns about the sustainability of AI investments have emerged, particularly in overseas markets during the Q3 earnings season [1] Group 1: Market Trends - Capital expenditures (Capex) from cloud vendors have significantly accelerated since the second half of 2023, with overseas cloud vendors expected to see over 50% year-on-year growth in Capex by 2025 [2] - Major tech companies like Microsoft, Amazon, and Alibaba are experiencing pressure on their balance sheets and cash flows due to high capital expenditures, which are estimated to be equivalent to their annual cloud revenues and account for about 60% of their operating cash flows [2][5] Group 2: Investment Focus - Despite the challenges, the fundamentals of major tech companies remain strong, and the trend of capital expenditures is likely to continue as the industry is still in the early stages of AI development [5] - The domestic substitution trend in the semiconductor equipment sector is expected to gain momentum, particularly in key equipment needed for advanced processes, as China continues to decouple from the US and its allies in high-tech fields [6] - Investors are encouraged to focus on domestic and overseas computing power supply chains, including products like the semiconductor equipment ETF (159516) and communication ETF (515880) [1][6]