Nvidia(US:NVDA) Shanxi Securities·2025-06-05 07:46Investment Rating - The report maintains an "Outperform" rating for the industry, indicating an expected increase in stock prices exceeding the benchmark index by more than 10% [1][44]. Core Insights - Nvidia's FY26Q1 revenue reached $44 billion, a 69% year-over-year increase, with data center revenue at $39 billion, up 73% year-over-year. The company faced a $2.5 billion order delivery issue due to U.S. government policy changes regarding H20, leading to a potential $8 billion revenue loss in Q2. However, Nvidia has successfully transitioned from Hopper to Blackwell, with improved manufacturing yields and strong cabinet shipments to major CSP customers [2][3][15]. - Nvidia emphasizes edge computing and has introduced tools to support the development of robotics and autonomous driving ecosystems. The gaming revenue hit a record $3.8 billion, growing 48% quarter-over-quarter and 42% year-over-year, driven by new products like RTX 5060. The company is also focusing on local AI deployment through platforms like Omniverse and Isaac [4][16]. - The Ministry of Industry and Information Technology released the "Computing Power Interconnection Action Plan," aiming to establish a comprehensive standard and rule system for computing power interconnection by 2026 and achieve nationwide public computing power standardization by 2028. This initiative is seen as crucial for enhancing the utilization of domestic computing power cards and sustaining government and enterprise computing leasing businesses [5][17]. Summary by Sections Industry Dynamics - Nvidia's transition to Blackwell has received positive market feedback, with expectations for continued valuation recovery in supporting sectors like optical modules and power supply units [3][15]. - The edge computing focus is expected to drive growth in sectors such as robotics and autonomous vehicles, with significant opportunities in control systems and sensors [4][16]. Market Performance - The overall market saw a decline during the week of May 26 to May 30, 2025, with the Shenwan Communications Index rising by 1.53%. The top-performing sectors included wireless RF (+8.17%) and satellite communications (+4.82%) [8][19]. - Individual stocks such as Haige Communications and Xinyi Technology led the gains, while companies like Dongtu Technology and Ruikeda experienced notable declines [31][19]. Recommendations - The report suggests focusing on companies in various sectors, including overseas computing (e.g., Xinyi Technology, Zhongji Xuchuang), robotics and autonomous vehicles (e.g., Guanghetong, Meige Intelligent), and computing networks (e.g., China Mobile, China Telecom) [19][7].