Nvidia(US:NVDA) Shanxi Securities·2025-06-05 08:23Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected increase in stock prices exceeding the benchmark index by more than 10% [1]. Core Insights - Nvidia's FY26Q1 financial report shows a revenue of $44 billion, a 69% year-over-year increase, with data center revenue reaching $39 billion, up 73% year-over-year. The transition from Hopper to Blackwell has improved production yields significantly, and Nvidia is ramping up the production of GB200 and GB300 [3][14]. - 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, which is expected to enhance the utilization of domestic computing power resources [5][16]. Summary by Sections Industry Dynamics - Nvidia's network business achieved $5 billion in revenue for Q1, a 64% quarter-over-quarter increase, driven by the shipment of NVLINK products and strong growth in Scaleout network products like SpectrumX, which has an annualized revenue exceeding $8 billion [3][14]. - The focus on edge computing by Nvidia is expected to drive growth in local intelligent deployments, particularly in sectors like autonomous driving and robotics, as costs for sensors decrease [4][15]. Market Performance - The overall market saw a decline during the week of May 26 to May 30, 2025, with the Shenwan Communication Index rising by 1.53%, while major indices like the Shanghai Composite Index and the ChiNext Index experienced slight declines [7][18]. - The top-performing sectors included wireless RF (+8.17%), satellite communication (+4.82%), and operators (+2.32%) [7][18]. Recommended Companies - Key companies to watch include: - Overseas Computing Power: New Yisheng, Zhongji Xuchuang, Cambridge Technology, Yuanjie Technology, Shijia Photon, Tengjing Technology, Wolong Nuclear Materials, Dingtong Technology, Shenghong Technology [6][18]. - Autonomous Vehicles/Robotics: Guanghetong, Meige Intelligent, Huagong Technology, Tianzhun Technology, Zhongke Chuangda, Chuangyao Technology, Yutai Micro, Suteng Juchuang, Hesai Technology [6][18]. - Computing Power Network: China Mobile, China Telecom, Shengke Communication, Changfei Optical Fiber, Bochuang Technology, Dekeli, Guangxun Technology [6][18].