Nvidia(US:NVDA) Shanxi Securities·2025-03-26 10:20Investment Rating - The report maintains an "Outperform" rating for the communication industry [1]. Core Insights - The communication sector is expected to be a significant value increment in the coming years, as highlighted by NVIDIA's updated roadmap for GTC2025 [3][15]. - The evolution from GB300 NVL72 to Vera Rubin NVL576 shows a clear path of advancement, with substantial improvements in performance metrics such as FP4 inference capabilities and memory [4][15]. - The report emphasizes the increasing value of copper connections, optical modules, and liquid cooling systems, driven by advancements in GPU technology [5][17]. Summary by Sections Industry Dynamics - NVIDIA's roadmap indicates that communication will remain a crucial area for value growth over the next few years, with products like Blackwell Ultra and Vera Rubin showcasing significant performance enhancements [3][15]. - The transition to measuring GPU counts by die rather than package has led to a notable increase in communication bandwidth, with projections showing annual growth rates of at least 100% for single-package bandwidth [5][16]. Investment Recommendations - The report suggests focusing on companies involved in copper connections, optical modules, and power supply systems, as these areas are expected to see increased demand due to technological advancements [6][19]. - For domestic computing power, companies like Unisplendour, Ruijie Networks, and Guangxun Technology are highlighted as key players to watch, alongside international firms such as NewEase and Tianfu Communication [20][19]. Market Overview - The overall market experienced a decline during the week of March 17-23, 2025, with major indices such as the Shanghai Composite Index dropping by 1.60% [9][19]. - Specific sectors like controllers and operators showed resilience, with gains of 2.2% and 1.4%, respectively, while the communication index fell by 3.85% [19][32]. Company Performance - Notable stock performances included Eastcom and Hengtong Optic-Electric, which saw increases of 18.38% and 4.08%, respectively, while companies like Guangxun Technology and Kingsoft faced significant declines [32][19].