Nvidia(US:NVDA) Bank of China Securities·2025-12-26 05:51Core Insights - The report emphasizes that computing infrastructure will drive AI growth, focusing on the transformative "0 to 1" phase in the industry [1][3] - Storage price increases are expected to persist throughout 2026, with advancements in technologies like 4F2 and CBA becoming key development directions [1][3] - The consumer electronics sector faces both cost pressures and innovation opportunities, particularly with the emergence of edge AI chips [1][3] Investment Recommendations - The report suggests monitoring companies in various segments: - Computing: Cambrian, Haiguang Information, Moore Threads, and Muxi [3] - Advanced Manufacturing: SMIC and Huahong [3] - Advanced Packaging: Tongfu Microelectronics and Yongxi Electronics [3] - PCB: Shenghong Technology, Shenzhen South Circuit, and others [3] - Storage: Jiangbolong, Biwei Storage, and others [3] - Edge AI SoC: Amlogic, Hengxuan Technology, and others [3] - Autonomous Driving: Horizon Robotics and others [3] Industry Performance - The report notes that the semiconductor equipment and digital chip design sectors have shown significant revenue growth, with the semiconductor equipment sector achieving a 31% YoY increase [19][20] - The overall electronic industry saw a revenue increase of approximately 19% YoY, with net profits rising by 42% [19][20] - The Shenyuan Electronics Index outperformed the CSI 300 Index, with a growth of about 49.1% compared to 19.2% for the latter [14][15] AI Infrastructure and Market Trends - The demand for AI tokens has surged, with Google processing tokens reaching 1.3 trillion in October 2025, more than double the amount from May 2025 [26][27] - Major cloud service providers are increasing capital expenditures significantly, with North American firms expected to spend $34.96 billion in 2025, a 53% YoY increase [29][36] - The report highlights that the global storage market is projected to grow from $263.3 billion in 2025 to $407.1 billion by 2029, with a CAGR of approximately 11.5% [1][3] Challenges and Opportunities - The consumer electronics sector is expected to face an 8-10% increase in costs in 2025 and 5-7% in 2026 due to rising storage prices [1][3] - Domestic AI chip manufacturers are experiencing both opportunities and challenges, with significant revenue growth reported for companies like Haiguang Information and Cambrian [52][54] - The introduction of NVIDIA's H200 chip could create a "catfish effect," prompting domestic manufacturers to enhance their products and performance [54]