Nvidia(US:NVDA) Shengang Securities·2025-03-05 09:21Market Overview - The electronic industry index of Shenwan fell by 4.87% last week (2.24-2.28), ranking 28th among 31 industries, underperforming the CSI 300 index by 2.64% [1][13] - In February (2.1-2.28), the electronic industry index rose by 8.31%, ranking 4th among 31 industries, outperforming the CSI 300 index by 6.39% [1][13] - Year-to-date (1.1-2.28), the electronic industry index increased by 8.02%, ranking 4th among 31 industries, outperforming the CSI 300 index by 9.16% [1][13] Nvidia Quarterly Report - Nvidia reported Q4 FY2025 revenue of $39.3 billion, a 78% year-over-year increase, with data center revenue at $35.6 billion, up 93% year-over-year [2][33] - The company delivered $11 billion worth of Blackwell chips, with net profit reaching $22.09 billion, a growth of 80% year-over-year [2][33] - For Q1 FY2026, Nvidia expects revenue in the range of $43 billion, indicating strong demand for AI chips, although gross margin is projected to drop to 71% due to increased Blackwell chip production [2][33] Storage Market Outlook - The storage supply-demand situation is gradually improving, with NAND Flash prices expected to rebound in the second half of the year, while DRAM prices may improve quarter by quarter [2][34] - In Q4 2024, the global NAND Flash market size is expected to decrease by 8.5% to $17.41 billion, while the DRAM market size is projected to grow by 13.5% to $29.345 billion [2][34] - The overall global storage market size is anticipated to grow by 4.2% to $46.755 billion in Q4 2024 [2][34] NAND Flash Price Trends - TrendForce indicates that NAND Flash prices may decline by 5% in Q2 2025 but could rebound by 10-15% in Q3 2025 and continue to grow by 8-13% in Q4 2025 [4][37] - As of February 28, the average trading price for general NAND Flash products rose to $2.29, a 5.29% increase month-over-month, attributed to production cuts by major manufacturers and consumer subsidies in China [3][36] DRAM Market Insights - The average trading price for general DRAM products remained stable at $1.35 as of February 28, with expectations of a slight decline of 3-5% in consumer-grade DRAM prices in Q1 2025 [5][38] - High-density DRAM demand is expected to surge due to AI servers, HPC, and autonomous vehicles, with price increases projected for HBM DRAM in Q2 and consumer electronics in Q3 [5][38] Investment Recommendations - The report suggests focusing on storage module companies such as Baiwei Storage, Lanke Technology, and Demingli, as well as chip design firms like Zhaoyi Innovation and Beijing Junzheng, due to anticipated improvements in storage prices and demand [6][39]