Bank of China Securities·2025-07-23 02:08Investment Rating - The industry investment rating is "Outperform the Market" [1][85] Core Insights - The AI infrastructure supply chain is entering a performance realization phase due to the maturation of business models driven by generative AI and large language models, alongside an increase in core hardware supply capacity [1] - The next generation of advanced AI infrastructure platforms is expected to continue driving product iterations and supply chain transformations, supporting the "Outperform the Market" rating [1] Demand and Supply Analysis - Global capital expenditure from major cloud computing companies remains high, with a projected increase in AI server demand, leading to sustained growth in AI cloud infrastructure [6][15] - The demand for high-end AI servers is expected to grow significantly, with a 150% increase in high-density interconnect (HDI) board demand as traditional server motherboards exceed 18 layers [45][49] - The AI server market is projected to reach $24.1 billion in 2024, with a year-on-year growth of 16% [49] Hardware and Technology Developments - NVIDIA's new GB300 NVL72 platform shows a tenfold improvement in user response speed compared to the previous generation, indicating significant advancements in AI performance [31] - The upcoming NVIDIA Rubin architecture, set to launch in 2026, will include GPUs, CPUs, and network processors, further enhancing the supply chain [34] Investment Recommendations - Recommended companies to focus on include: - PCB: Shenghong Technology, Huitian Technology, Shenzhen South Circuit, Pengding Holdings, Founder Technology, Shengyi Technology, Jingwang Electronics, and Guanghe Technology [3][78] - CCL: Shengyi Technology and Nanya New Materials [3][78] - Glass Fiber Cloth: Feilihua, China National Building Material, and Honghe Technology [3][78] - Copper Foil: Longyang Electronics and Defu Technology [3][78] - Epoxy Resin and Fillers: Dongcai Technology, Shengquan Group, Tongyu New Materials, and Lianrui New Materials [3][78]