Nvidia(US:NVDA) Huachuang Securities·2025-06-02 00:20Investment Rating - The report maintains a "Recommendation" rating for the communication industry, indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [31]. Core Insights - The communication industry has shown resilience, with a weekly increase of 1.53%, outperforming the Shanghai and Shenzhen 300 index by 2.61 percentage points [9][10]. - Nvidia's FY26Q1 financial results indicate strong revenue growth, with a year-on-year increase of 69.18%, reaching $44.062 billion, driven by data center and gaming segments [16][18]. - The report highlights the ongoing development of the computing power industry chain, with a long-term positive outlook for both domestic and overseas markets [8][24]. Summary by Sections Industry Overview - The communication industry consists of 124 listed companies with a total market capitalization of approximately 48,140.08 billion yuan [1]. - The industry has experienced a year-to-date decline of 4.12%, underperforming the Shanghai and Shenzhen 300 index, which has decreased by 2.41% [9]. Performance Metrics - The communication sector's PE-TTM is reported at 29.16, compared to 12.46 for the Shanghai and Shenzhen 300 index and 30.20 for the ChiNext index [5]. - The report notes that the communication sector's performance ranks 8th among all primary industries for the week and 21st for the year [10]. Nvidia's Financial Performance - Nvidia's data center revenue reached $39 billion in Q1, a 73% year-on-year increase, primarily driven by the Blackwell architecture [18]. - The gaming and AIPC segments generated $3.8 billion in revenue, reflecting a 42% increase, supported by the widespread adoption of Blackwell technology [19]. - The automotive segment saw a revenue increase of 72% year-on-year, totaling $567 million, driven by strong demand for autonomous driving solutions [21]. Investment Recommendations - The report recommends focusing on key players in various segments, including: - Telecom operators: China Mobile, China Telecom, China Unicom [25]. - Optical modules and components: NewEase, Tianfu Communication, Zhongji Xuchuang [25]. - Military and satellite communication: Haige Communication, Shanghai Hanyun, 712 [25]. - Equipment manufacturers: Gongjin Co., Ltd., with additional attention to Ziguang Group, ZTE, and Ruijie Networks [25].