Nvidia(US:NVDA) Shanxi Securities·2025-03-26 10:23Investment Rating - The report maintains an "Outperform" rating for the telecommunications industry [1]. Core Insights - The telecommunications sector is expected to be a significant value increment in the coming years, as highlighted by NVIDIA's updated roadmap during GTC 2025 [3]. - The evolution from GB300 NVL72 to Vera Rubin NVL576 shows a clear path of advancement, with substantial improvements in performance metrics [4][14]. - The report emphasizes the increasing importance of copper connections, optical modules, and liquid cooling in driving value growth within the industry [6][16]. Summary by Sections Industry Trends - NVIDIA's GTC 2025 roadmap indicates that communication remains a critical area for value growth in the next few years [3]. - The introduction of Blackwell Ultra products, starting in the second half of 2025, will enhance performance significantly, with NVL72 achieving 1.1 EFLOPS and Vera Rubin reaching up to 50 PFLOPS [4][14]. - The report notes that the bandwidth for single GPU packages is expected to double annually, indicating a robust growth trajectory for communication technologies [5][15]. Investment Recommendations - The report suggests focusing on companies involved in copper connections, optical modules, and AI server technologies, as these areas are projected to see substantial demand growth [8][18]. - Key companies to watch include Unisplendour, Ruijie Networks, and Guangxun Technology in the domestic market, and NewEase, Tianfu Communication, and Zhongji Xuchuang in the overseas market [19]. - The report highlights the anticipated increase in capital expenditures from major players like Alibaba, Tencent, and ByteDance, which is expected to benefit the industry [18]. Market Overview - The overall market experienced a decline during the week of March 17-23, 2025, with the Shanghai Composite Index dropping by 1.60% and the Shenzhen Component Index falling by 2.65% [8][31]. - Among the sub-sectors, the controller and operator segments showed resilience, with increases of 2.2% and 1.4%, respectively [8][21]. - Notable stock performances included Dongtu Technology and Hengtong Optic-Electric, which saw gains of 18.38% and 4.08% [31].