Nvidia(US:NVDA) GUOTAI HAITONG SECURITIES·2026-02-28 10:59Investment Rating - The report assigns an "Overweight" rating for the industry [4]. Core Insights - Nvidia reported record revenue of $68.1 billion for FY26Q4, a 73% year-over-year increase, and a GAAP net profit of $42.96 billion, up 94% [2][9]. - The report emphasizes the growing opportunities in the AI industry, particularly in the AI computing supply chain [2][39]. - The report highlights the strong performance of AAOI, which has significantly revised its earnings expectations upward due to high-end product demand [15]. Summary by Sections Weekly Viewpoint - Nvidia's quarterly revenue reached $68.1 billion, exceeding market expectations, with a strong guidance for Q1 FY27 at $78 billion [7][10]. - The data center business, a core growth driver, generated $62.3 billion in revenue, marking a 75% year-over-year increase [7][11]. - The report suggests focusing on key opportunities along the AI computing supply chain, including optical modules, CPO, and AI servers [7]. Industry News - Nvidia's record revenue is seen as a bellwether for AI demand, with CEO Jensen Huang stating that the adoption of AI is at a turning point [9][10]. - Alibaba Cloud launched its Coding Plan, offering access to top open-source models, significantly reducing costs for high-frequency coding tasks [13][14]. - AAOI's latest earnings report shows a total revenue of $456 million for 2025, a year-over-year increase of 83%, with expectations for continued growth in 2026 [15][16]. Investment Highlights - The industry has seen an increase in holding ratios, with valuations at historically high levels, reflecting positive expectations driven by the AI supply chain [39]. - Strong overseas demand and the acceleration of domestic AI infrastructure are expected to benefit core domestic companies [40][41]. - The report anticipates a significant shift in the industry with new connections and technologies emerging in 2026, creating more investment opportunities [42]. - AI-driven network upgrades are expected to enhance communication capabilities, with rapid advancements in new technologies [43].