Core Insights - The performance of some GPUs is hindered by insufficient storage speed, leading to underwhelming application results and overall efficiency limitations [2][3] Group 1: Storage and GPU Performance - The main issue affecting GPU performance is the waiting time for storage data, which results in resource wastage and restricts efficiency improvements [2] - The demand for storage solutions is increasing as the pace of computational power development accelerates [2] - New AI scenarios will require SSDs to adopt GPU direct scheduling methods to achieve high throughput and performance [2] Group 2: Market Trends and Innovations - Companies like 英韧科技 are focusing on enterprise-level storage solutions tailored for AI applications, aligning with international trends [2] - Recent product launches include "AI SSD" by 铠侠 and ultra-high-speed products by 三星 and 海力士, designed to meet the demands of AI GPU data scheduling [2] Group 3: Technical Requirements for AI SSDs - Key performance indicators for storage in data centers include high IOPS, low latency, and QoS, which define storage capabilities from efficiency, response speed, and stability perspectives [3] - The construction of AI SSDs requires three main elements: media with low latency and high transfer efficiency, high-speed interfaces and protocols, and a simple yet efficient architecture [3] Group 4: Competitive Product Development - 英韧科技's latest Dongting-N3X series utilizes PCIe Gen5 interface and new XL-Flash media to meet current AI SSD application demands [4] - Future product iterations are planned, with expectations to reach 10M IOPS by 2026 and 25-50M IOPS by 2027, along with the integration of NVMe and CXL protocols [4]

Group 1 - The report highlights the growth opportunities in domestic computing power and storage driven by AI advancements [4][5][9] - The 5G infrastructure is expected to significantly contribute to economic growth, with a target of 4.52 million 5G base stations by the end of 2024, marking a net increase of 874,000 from the end of 2023 [7][10] - The AI sector is experiencing rapid development, with increasing demand for computing power and network traffic, indicating a positive growth trajectory for AIGC applications [9][10] Group 2 - The coal industry is showing signs of potential recovery, with supply constraints and inventory restructuring driving prices upward [29][30] - The C-REITs market is experiencing fluctuations, with a total market value of approximately 221.21 billion, and a focus on high-quality projects in resilient sectors [32] - The renewable energy sector, particularly wind power, is witnessing significant growth, with an increase of 20% in August, and a 23% rise in green certificate trading prices [38] Group 3 - The real estate market is facing challenges, with new home sales showing a year-on-year increase of 16.2%, but overall prices continuing to decline [40][41] - The non-ferrous metals sector is expected to perform well following the Federal Reserve's interest rate cuts, indicating a favorable outlook for this industry [43] - The textile and apparel sector is seeing robust growth in jewelry retail sales, while the sportswear segment is anticipated to outperform the broader apparel market [43]

Investment Rating - The report maintains a "Buy" rating for key stocks in the industry, including 中芯国际, 长电科技, 东山精密, and others [11] Core Viewpoints - The report highlights the opportunities in the domestic storage and computing power sectors driven by AI, with a focus on the increasing demand for storage products and the development of domestic AI chips [2][3][26] - The launch of the iPhone 17 series is expected to boost the supply chain performance, with significant pre-order numbers indicating strong market demand [4][57] - Meta's introduction of AR glasses is seen as a step towards enhancing the metaverse experience, with expectations for increased market share in LCoS display technology [58][59] Summary by Sections Storage Sector - The storage market is experiencing a supply-demand mismatch, leading to price increases for HDD products, with Western Digital announcing price hikes due to unprecedented demand [14][15] - The shortage of HDDs is expected to accelerate the penetration of high-capacity enterprise SSDs, with significant growth anticipated in QLC SSD shipments by 2026 [15][16] - NAND Flash shortages are projected to persist until 2026, with major manufacturers announcing production cuts, leading to further price increases in the market [20][24] Computing Power Sector - Domestic manufacturers are accelerating self-research in AI chips, with significant projects like China Unicom's green computing center showcasing multiple domestic AI chip brands [26][29] - Huawei's roadmap for its Ascend AI chips indicates a series of upcoming releases, with substantial improvements in performance and memory bandwidth [29][40] - The introduction of supernodes by Huawei, such as the Atlas950 and Atlas960, is expected to significantly enhance computing power capabilities, supporting large-scale AI applications [47][48] Apple Product Launch - The iPhone 17 series has seen a record-breaking pre-order volume in China, with a nearly threefold increase compared to the previous generation, indicating strong consumer demand [57] - The new iPhone models feature advanced technology and design improvements, which are expected to drive sales and positively impact the supply chain [52][57] Meta's AR Glasses - Meta's Ray-Ban Display AR glasses are set to launch with advanced display technology, expected to capture a significant market share in the AR segment by 2026 [58][59] - The glasses feature a combination of LCoS display technology and optical waveguide, providing high-quality visuals while maintaining user privacy [58][59]

Core Insights - The electronic sector has shown significant growth, with the Shanghai Composite Index rising by 0.84% and the electronic industry increasing by 6.28% over the past week [1][2] - The semiconductor sector is experiencing a rapid uptrend, driven by optimistic forecasts from TSMC, SMIC, and Hua Hong Semiconductor regarding future orders and market conditions [1][2] - Alibaba is heavily investing in AI, with a commitment of 380 billion yuan over the next three years for AI and cloud infrastructure, reflecting a strong focus on domestic computing power and storage opportunities [2] Electronic Industry Performance - The components sub-sector surged by 14.15%, while optical and optoelectronic components rose by 1.16% [1][2] - The Hang Seng Tech Index and Taiwan's information technology sector also saw increases of 0.47% and 2.42%, respectively, while the Philadelphia Semiconductor Index declined by 1.49% [1][2] Semiconductor Sector Developments - TSMC has revised its annual performance guidance upwards, contributing to a sector-wide rally [1][2] - Domestic computing power supply chains are improving, with companies like Deepseek and Alibaba increasing their procurement and adaptation efforts for domestic computing solutions [2] AI and Cloud Infrastructure Investments - Alibaba's recent financial report indicates a capital expenditure of 38.6 billion yuan in AI and cloud infrastructure for Q2, with a total investment exceeding 100 billion yuan over the past four quarters [2] - The company is developing a new AI chip compatible with Nvidia, indicating a strategic move towards self-sufficiency in AI hardware [2] Government Initiatives - The State Council has issued an "Artificial Intelligence+" action plan, aiming for widespread integration of AI across six key sectors by 2027, with a target of over 70% application penetration [2] - By 2030, the goal is to achieve over 90% penetration of new-generation smart terminals and intelligent agents, positioning AI as a crucial growth driver for the economy [2] Storage Market Outlook - The storage market is showing signs of recovery, with domestic module manufacturers reporting significant revenue growth in Q2 [4] - Companies like Jiangbolong and Demingli have seen net profit increases of 209.7% and 82.57% respectively, indicating a positive trend in the storage sector [4] Display Panel Market Trends - In July, global shipments of large-size LCD TV panels reached 20.4 million units, marking an 8.9% year-on-year increase [5] - Major brands are increasing panel procurement in preparation for market share expansion in the latter half of the year, with production rates expected to remain around 90% [5]

Investment Rating - The report maintains an "Outperform" rating for the electronic industry [1][10]. Core Insights - Alibaba is significantly increasing its investment in AI, focusing on domestic computing and storage supply chain opportunities, with a projected capital expenditure of 380 billion yuan over the next three years [2][3]. - The semiconductor sector is experiencing rapid growth, driven by optimistic forecasts from major players like TSMC and SMIC, alongside increased domestic capabilities in advanced processes [1][3]. - The report emphasizes the importance of the "three cycles" (macroeconomic policy, industry inventory, and AI innovation) in driving valuation expansion in the electronic sector by 2025 [1][7]. Summary by Sections Industry Performance - The Shanghai Composite Index rose by 0.84%, while the electronic sector surged by 6.28%, with components up by 14.15% and optical electronics by 1.16% [1][11]. - The report notes a significant increase in the performance of the electronic industry compared to other sectors, highlighting the resilience and growth potential of this market [11]. Key Companies and Recommendations - Recommended companies include SMIC, Jianghai Technology, Aojie Technology, Demingli, Huahong Semiconductor, Industrial Fulian, Lanke Technology, Huaqin Technology, Jiewa Technology, and Jingchen Technology [1][2]. - The report suggests focusing on companies involved in AI hardware and domestic chip manufacturing, such as SMIC, Huahong Semiconductor, and Cambrian [2][3]. Market Trends - The report highlights a recovery in the storage market, with domestic manufacturers showing improved performance in Q2, indicating a positive trend for the sector [7]. - The global large-size LCD TV panel shipments increased by 8.9% year-on-year in July, suggesting a rebound in demand and a proactive approach from major brands in increasing panel orders for the upcoming quarter [8]. Financial Projections - The report provides earnings forecasts and investment ratings for key companies, indicating a generally positive outlook for the electronic sector with expected earnings growth for several firms [10].

Core Viewpoint - As of June 30, 2023, China's computing power centers have reached a total scale of 10.85 million standard racks, with intelligent computing power at 78.8 billion billion times per second (EFLOPS) and storage capacity exceeding 1,680 exabytes (EB), marking a growth of approximately 40% compared to 2023 [1] Group 1 - The completion of the access work for the computing power platform in 10 provinces, including Shanxi, Liaoning, Shanghai, Jiangsu, Zhejiang, Shandong, Henan, Qinghai, Ningxia, and Xinjiang, has been achieved, enabling comprehensive connectivity of "platform, entities, resources, ecology, and scenarios" [1] - The national-level comprehensive computing power service platform integrates "supply, demand, and service," allowing compatibility and interoperability between different systems, platforms, and tools [1] - As of July 31, 2023, the platform has registered over 1,000 enterprise users and more than 100 computing power service providers, with over 110 high-quality computing power products listed and access to over 90 mainstream foundational and vertical models [1]

Group 1 - As of June 30, 2023, China's operational computing center rack scale reached 10.85 million standard racks, with intelligent computing power at 78.8 hundred billion billion times per second (EFLOPS) [1] - Storage capacity exceeded 1,680 exabytes (EB), representing an approximate 40% growth compared to 2023 [1] - A total of 1,509 large models have been released, placing China among the global leaders in this area [1] Group 2 - Recently, the China Computing Power Platform completed the integration of sub-platforms in 10 provinces, achieving comprehensive connectivity across "platform, entities, resources, ecology, and scenarios" [1] - As a national-level comprehensive computing service platform, it integrates "supply, demand, and service," enabling compatibility and interoperability between different systems, platforms, and tools [1] - By the end of July, the platform had registered over 1,000 enterprise users and more than 100 computing service providers, offering over 110 high-quality computing products and connecting with over 90 mainstream foundational and vertical models [1]

Core Insights - The "Storage Power China Tour" was launched in Guangdong, focusing on the core value of the storage industry in the data factorization wave and exploring new paths for high-quality development in storage [1][3] Group 1: Industry Trends and Developments - The global digital economy is rapidly evolving, with artificial intelligence driving a new wave of industrial transformation. Data has become a fundamental strategic resource, and storage is increasingly recognized as a core foundation for ensuring efficient allocation and security of data elements [5] - The total storage capacity in China is projected to reach 1580EB by the end of 2024, with advanced storage accounting for 28% of this capacity [5] - The Ministry of Industry and Information Technology has emphasized the integration of "computing power, storage power, and operational power" in the development of new infrastructure [6] Group 2: Strategic Recommendations - Recommendations include exploring optimal paths and sharing best practices, focusing on inclusive storage services and efficiency improvements, and strengthening technological breakthroughs and industrial collaboration [5] - The importance of innovation-driven strategies and building a self-controllable industrial ecosystem was highlighted to address international competition and security challenges [6] Group 3: Technological Innovations - Huawei's storage solutions are positioned as a core component of new data infrastructure, emphasizing four dimensions: scale aggregation, efficient governance, secure supply, and industrial application [6] - The company has developed a comprehensive product matrix covering core production systems, AI training and inference, distributed storage, and data protection [9] Group 4: Practical Applications and Case Studies - Experts shared practical experiences in storage empowerment for industries, including the use of distributed storage systems in healthcare to ensure data security and support AI model training [8] - Guangdian Wuzhou Technology Co., Ltd. focuses on domestic and differentiated development in storage technology, achieving advanced storage infrastructure in various projects [8]

Core Insights - The article emphasizes the critical role of data storage capacity, referred to as "存力" (storage power), in the context of the exponential growth of data driven by advancements in artificial intelligence (AI) technology [1][8] - It highlights the dual importance of computing power ("算力") and storage power as essential components for unlocking the value of data and fostering new infrastructure development [1][8] Industry Overview - The global data volume is expected to grow at an annual rate of 36%, reaching Yottabyte (YB) scale by 2030, necessitating efficient and secure data storage solutions [1] - The Chinese government has recognized the significance of storage power, with initiatives like the "算力基础设施高质量发展行动计划" aimed at enhancing the quality of computing and storage infrastructure [1][8] Company Insights - Guangzhou Huayin Kang Medical Group (华银康集团) is a leading independent medical testing and diagnostic service provider in China, focusing on pathology services [2] - The company has developed a comprehensive "AI + system + equipment + resources" service model, integrating advanced AI technologies to enhance diagnostic capabilities [5][7] Challenges and Solutions - Huayin Kang faces significant challenges in data storage, with an annual testing volume of approximately 40 million samples, each pathology image requiring nearly 1GB of storage [7] - The company has implemented a distributed storage system and advanced compression techniques to manage storage demands, although it still requires annual capacity expansions in the Petabyte (PB) range [7][8] Future Trends - The article discusses the evolving landscape of data storage, where traditional storage methods are becoming inadequate due to the increasing complexity and volume of data generated by AI applications [9][11] - It suggests that the establishment of storage centers will be crucial for integrating data across various sectors, enhancing data governance, and facilitating the development of new industries and job roles [12][15]