Summary of Key Points from the Conference Call Industry Overview - The discussion centers around the **Global Semiconductors** industry, particularly focusing on the **AI compute race** between the **US** and **China** [1][2][14]. Core Insights and Arguments - The US is projected to add **over 25 ZFLOPs** in AI accelerated compute capacity by **2025**, while China is expected to add **less than 1 ZFLOP** [3][15]. - China is estimated to ship **1.5 million** local AI chips in **2025**, contributing approximately **0.6 ZFLOPS** to its compute capacity, while US competitors like Nvidia are expected to add **18 ZFLOPS** from **4 million** chips [3][21]. - Despite China having a higher total power capacity addition of **over 500 GW** in **2025**, the US has added more data center capacity, with **5.3 GW** in **2024** compared to China's **3.9 GW** [4][19]. - Chinese Cloud Service Providers (CSPs) are reportedly more conservative in AI investments, with an estimated **AI capex of $90 billion** in **2025**, which is about **20%** of the US/Europe hyperscaler and neocloud capex of **$400 billion** [4][19]. Additional Important Insights - China's semiconductor wafer capacity is approximately **30%** of the global total, but it lacks leading-edge logic capacity, holding only **20%** of the global logic capacity and **7%** for **7nm or smaller** nodes [5][19][35]. - The US's ability to leverage its allies, particularly South Korea and Taiwan, for chip production is highlighted, indicating that the US itself does not have sufficient chip capacity [7][20]. - The potential for China to close the gap in AI capabilities exists, but it is contingent on the duration of the AI race and the development of advanced chip technology [6][18]. - The report suggests that the gap in AI chip output is likely wider than total logic foundry capacity indicates, as China's current production capabilities are hampered by export controls and technology limitations [19][40]. Investment Implications - **Nvidia (NVDA)** is rated as outperform with a price target of **$275**, indicating significant upside potential in the datacenter opportunity [10]. - **Broadcom (AVGO)** is also rated outperform with a price target of **$400**, supported by a strong trajectory in AI for **2025** [10]. - **AMD** is rated market perform with a price target of **$200**, with expectations of growth driven by a new deal with OpenAI [10]. - **Hygon (688041 CH)** is rated outperform with a price target of **CNY 220**, while **Cambricon (688256 CH)** is rated market perform with a price target of **CNY 1100** [11][12]. This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current state and future outlook of the semiconductor industry, particularly in the context of AI development between the US and China.

Core Insights - Tesla's sales in China fell to a three-year low in October, raising concerns about a potential full-year sales decline in the country [1] - The company's market share in the Chinese EV sector decreased significantly from 8.7% in September to 3.2% in October [1] Competitive Landscape - Tesla faces intense competition from local rivals such as NIO and Li Auto, which are also reporting strong sales [1] - Xiaomi has emerged as a new competitor in the upper segment of the Chinese EV market, achieving record sales for its YU7 SUV and SU7 sedan despite safety concerns [2] - Leapmotor, a newer player founded in 2015, has begun to outperform local competitors in sales and stock price, with its C10 SUV priced significantly lower than Tesla's Model Y [4] - Geely's Geome Xingyuan leads EV sales in China this year, targeting budget-conscious consumers with a price tag under $10,000, indicating a shift in consumer preferences [5][6] Tesla's Position and Future Outlook - Despite the competition, Tesla's Model Y remains competitive, ranking 6th in the overall market [7] - Analysts suggest that Tesla needs to refresh its vehicle models to keep pace with local competitors like Xiaomi, BYD, and XPeng [8] - Tesla's third-quarter revenue increased by 12% year-over-year to $28.10 billion, but the company continues to experience a sales slump in Europe due to competition from brands like Volkswagen and BYD [8][9]

Tesla's China sales dropping to a three-year low last month. Ununice Yun joins us this morning from Beijing with a look at the competition. Ununice.>> Thanks, Andrew. Well, Tesla's share of the Chinese EV market shrank from 8.7% in September to 3.2% last month. So, I took a look at some of the latest competition.Tesla's newest direct competitor in the upper echelon of the Chinese EV market is China's Xiaomi. The smartphone makers U7 SUV and Sue7 sedan posted record sales in October despite accidents that ra ...

Core Insights - Tesla's market share in China's EV sector has significantly decreased from 8.7% in September to 3.2% in October, indicating a drop to a three-year low in sales [1] Competition Landscape - Xiaomi has emerged as a direct competitor in the upper segment of the Chinese EV market, with its U7 SUV and Sue7 sedan achieving record sales in October, selling nearly 109,000 cars in Q3 compared to Tesla's 170,000 [2] - Leap Motor, a Chinese EV startup, has begun to outperform its peers in sales and stock price, with its C10 midsized SUV priced at approximately half of Tesla's Model Y [3] - Jile Geom Shining Yuen has become the top EV sales champion in China this year, targeting the budget segment with vehicles priced under $10,000, reflecting a shift in consumer preferences towards value [3][4] Market Trends - The Chinese government plans to end its tax rebate program for EV buyers by the end of December, which may intensify competition in the market [5] - Traditional automakers like Jile are making significant inroads into the EV market, while tech giant Huawei is also becoming a notable competitor by partnering with established car manufacturers [4] Industry Challenges - The EV market in China is crowded, with many state-backed and private companies, leading to challenges in consolidation and competition [8] - Analysts suggest that Tesla's business model, which does not prioritize frequent model refreshes, may hinder its competitiveness compared to Chinese companies that regularly release new models [8][9]

Flash | 16 Nov 2025 21:08:44 ET │ 11 pages Horizon Robotics (9660.HK) What's New from Citi 2025 China Conference: 2026E Outlook CITI'S TAKE We hosted management update meeting with Horizon Robotics on Nov 14 during the Citi 2025 China Conference, with key takeaways as below. Mgmt. expects 2026 high-end shipment (HSD) at 300-500k units (vs 10- 15k units guided for 2025), mid-end shipment around 3mn units and low- end shipment around 2mn units. Among its expected 2026 high-end shipment (HSD), mgmt. anticipate ...

Asia Pacific Equity Research 17 November 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. ESS Battery AIDC ESS expert call takeaways rebecca.y.wen@jpmorgan.com J.P. Morgan Securities (Asia Pacific) Limited/ J.P. Morgan Broking (Hong Kong) Limited Alan Ho ...

Who do you think has the best chance of challenging Nvidia. >> The other black swan that I think is missing in the equation today, my early prediction for 2026 is Huawei, where I think that there's lithography technology that exists in China that is not publicly discussed that is going to be deployed in Huawei and all these fabs that they're building in mainland China. And Huawei can create at a very low cost, probably very high volume, and probably in reasonably short order chips that can start to rival fo ...

Group 1 - The AI industry is experiencing a bubble, with insiders acknowledging the irrational exuberance in valuations and expectations compared to actual capabilities [4][5][6][26] - Nvidia reported a significant revenue increase of 62% in the last quarter, with a forecast of 65% year-over-year growth, indicating strong demand for its products [10] - Despite Nvidia's strong earnings, there are concerns about the sustainability of high valuations in the AI sector, as many companies are raising capital at inflated valuations [7][8][31] Group 2 - Google has regained its position as a leader in AI, with its new model Gemini 3 achieving top performance benchmarks and driving investor interest [31][32][34] - The launch of Gemini 3 has coincided with a resurgence in Google's stock price, reaching all-time highs, as the company effectively integrates AI into its products [31][34] - Google's custom chips (TPUs) are being utilized to enhance the performance of its AI models, providing a competitive edge over rivals [32][34][57] Group 3 - The rise of Chinese AI companies poses a significant threat to Nvidia and the broader AI market, as these companies are rapidly developing competitive models at lower costs [67][76] - The shift towards open-source AI models in China contrasts with the proprietary models favored by Western companies, potentially leading to a competitive disadvantage for U.S. firms [82][84] - Investors may be underestimating the risks posed by China's advancements in AI technology and its implications for U.S. companies like Nvidia [76][78][80]

The H 200. Remind us. Where does this chip fall in invidious current lineup.Yeah. So this is the prior generation. The generations most powerful chip are significantly more powerful and faster than the H20, which today they are allowed to ship, but buyers are not lining up to buy that chip.Significantly higher ASP than the H20, almost 1.5% to 2 x higher. So a license for this chip would be huge for Nvidia, as you pointed out. Not the Blackwell, though.And I'm just curious about how how powerful this is, rig ...

Core Insights - Huawei is launching a "Wheelchair Mode" for its active ring feature, aimed at enhancing accessibility for wheelchair users globally [1][3] - The company has achieved over 200 million cumulative global wearable shipments and ranked first in global wearable device shipments in the first half of this year [4] - Huawei's brand value has significantly increased, moving to 39th position in the 2025 Kantar BrandZ Top 100 Most Valuable Global Brands list [5] Product Innovation - The "Wheelchair Mode" will scientifically assess wheelchair users' activity by tracking wheelchair pushes, exercise duration, and calorie consumption [3] - Huawei emphasizes user-centric innovation, responding to diverse consumer expectations with products like smartphones, tablets, and wearable devices [8] Market Position - Huawei's continuous product innovation and rising market share demonstrate its ability to navigate global market challenges [5] - The company is focusing on wearable devices in the sports and health sector, with initiatives like the "Active Rings" themed activities in various global cities [9] Global Strategy - Huawei is committed to globalized innovation and industrial cooperation, collaborating with over 150 research institutions worldwide [10] - The company aims to provide comprehensive customer service, with support in over 30 languages and more than 3,000 customer service centers globally [11] Future Outlook - Huawei plans to maintain a consumer-centric approach, fostering connections with global users and local communities [12]