Microsoft(US:MSFT) Minsheng Securities·2025-09-28 07:29Investment Rating - The report maintains a "Recommended" rating for Invec, Gaolan Co., and a "Cautious Recommendation" for Kexin New Source [4]. Core Insights - Microsoft's breakthrough in liquid cooling technology, specifically in-chip microfluidic cooling, significantly enhances heat removal efficiency by 2-3 times compared to traditional methods, allowing for stable high-frequency operation of chips and reducing peak temperature by 65% [2][3]. - The introduction of this technology is expected to reshape the IDC liquid cooling landscape, potentially leading to a "second impact" on the industry as more chip servers may come with built-in liquid cooling systems [2]. - The global electricity demand for data centers is projected to double from approximately 460 TWh in 2024 to over 1000 TWh by 2030, indicating a substantial increase in infrastructure energy consumption [3]. Summary by Sections Liquid Cooling Technology - Microsoft's new liquid cooling method utilizes microfluidic technology, which involves etching micron-level channels on the back of chips to directly cool heat sources, improving operational efficiency and sustainability [2]. - The potential for a 20%-30% improvement in Power Usage Effectiveness (PUE) could lead to significant reductions in data center operational costs [2]. Market Opportunities - The report highlights the growing need for advanced cooling solutions as AI development continues to drive demand for higher computing power, positioning liquid cooling as a critical technology to address power constraints [3]. - Companies to watch include Invec, Gaolan Co., and Kexin New Source, which are expected to benefit from these advancements in cooling technology [3]. Financial Projections - The report provides earnings per share (EPS) forecasts for key companies, with Invec projected to have an EPS of 0.61 in 2024, while Gaolan Co. is expected to recover from a loss to an EPS of 0.09 in 2025 [4].