Nvidia(US:NVDA) Shanxi Securities·2025-12-31 06:54Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating expected growth exceeding the benchmark index by over 10% [1][40]. Core Insights - Nvidia's acquisition of Groq for $20 billion highlights the rapid growth in AI inference demand, driven by low-latency inference technology [2][14]. - Groq's revenue is projected to reach $500 million in 2025, with estimates of $1.2 billion and $1.9 billion for 2026 and 2027 respectively, and a recent valuation of $6.9 billion [3][14]. - The report emphasizes the importance of deterministic computing and networking in Groq's technology, which will synergize with Nvidia's capabilities, enhancing the demand for high-speed interconnects and optical modules [4][15]. Summary by Sections Industry Trends - Nvidia's acquisition of Groq signifies a strategic move towards enhancing AI inference capabilities, with Groq's unique chip innovations expected to drive market growth [2][14]. - The report notes that the optimal architecture for inference is still evolving, providing opportunities for both GPGPU and ASIC markets, which is encouraging for domestic companies entering the market [4][15]. Market Performance - The overall market saw an increase during the week of December 22-26, 2025, with the Shenwan Communication Index rising by 4.07% and the ChiNext Index by 3.90% [8][18]. - The satellite communication sector led the gains with a weekly increase of 29.13%, followed by liquid cooling and connectors [8][18]. Company Recommendations - The report suggests focusing on companies within the Nvidia ecosystem, including Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication, as well as those in the commercial aerospace sector like Shanghai Hanyun and XinKe Mobile [6][18].