Core Insights - The article emphasizes the strategy of "buying cold points and selling hot ones," suggesting that investors should focus on undervalued sectors rather than chasing after current hot stocks [1] - The electricity sector has recently seen a 10% increase in value, indicating a shift from cold to hot, which supports the idea of identifying potential opportunities in less popular sectors [1] - The overall market trend is upward, and investors are encouraged to look for sectors that are still relatively cold, such as non-ferrous metals, which may heat up following a stabilization in tariffs expected on July 9 [1] Sector Analysis - The electricity sector has transitioned from being cold to hot, demonstrating a significant 10% increase in just one week, highlighting the potential for rapid changes in sector performance [1] - Non-ferrous metals are currently identified as a cold sector, suggesting that there may be opportunities for growth as market conditions improve [1] - Emerging technologies such as controllable nuclear fusion, solid-state batteries, and computing chips are also mentioned as potential investment opportunities that may be reaching a favorable time for entry [1]

Core Viewpoint - The article discusses the advancements and competitive landscape in the semiconductor industry, particularly focusing on the latest chip technologies from major players like NVIDIA, Intel, AMD, and various domestic manufacturers in China [1][3]. Group 1: Major Chip Manufacturers - NVIDIA has introduced several high-performance chips, including the H100-SXM with 80 billion transistors and a transistor density of 98 million/mm², and the upcoming H200 series [5][6]. - Intel is set to release the Gaudi2 and Gaudi3 chips, with Gaudi3 featuring a 5nm process technology [6][8]. - AMD's MI300 series, including MI300X and MI300A, showcases significant transistor counts of 1.53 billion and 1.46 billion respectively, with MI300X having a transistor density of 15 million/mm² [5][7]. Group 2: Domestic Chip Developments - Chinese manufacturers are also making strides, with chips like the MLU370-X4 featuring 39 billion transistors and a 7nm process technology [5][6]. - The article highlights various domestic chips, including the MLU290-M5 and MLU270 series, which are designed for specific applications and show competitive specifications [6][8]. - The development of specialized chips, such as the 推理专用芯片 (Inference Dedicated Chips), indicates a growing focus on tailored solutions within the domestic market [9]. Group 3: Performance Metrics - The article provides detailed performance metrics for various chips, including power consumption and arithmetic intensity, with NVIDIA's GB200 achieving an arithmetic intensity of 2500 BF16 [7][8]. - The efficiency of these chips is highlighted, with some achieving significant performance per watt, indicating advancements in energy efficiency alongside processing power [7][8]. - The memory bandwidth and capacity of these chips are also discussed, with NVIDIA's H200-SXM featuring a memory bandwidth of 4.8 TB/s, showcasing the high-performance capabilities of modern chips [8][9].

Core Viewpoint - The establishment of the Hohhot Disruptive Technology Special Fund aims to promote the transformation of cutting-edge disruptive technology achievements and foster new productive forces in the region [1] Fund Overview - The total scale of the fund is 200 million yuan, with an initial fundraising of 50 million yuan [1] - The fund is initiated by the Beijing-Tianjin-Hebei National Technology Innovation Center and the Hohhot Science and Technology Bureau [1] Investment Focus - The fund will focus on key future industry sectors such as artificial intelligence, new energy storage, computing chips, and cell and gene therapy [1] - It aims to create a comprehensive ecosystem involving "platform + fund + park + industry" to effectively promote technological innovation and industrial upgrading in Hohhot [1] Economic Impact - The fund is expected to support high-quality regional economic development by establishing a sustainable growth mechanism for future industry investments [1] - It will actively promote a virtuous cycle of "technology research and development - scenario application - future industry" to invigorate technological innovation in Hohhot [1]

Group 1 - The A-share market saw all three major indices rise collectively, with active performances in sectors such as power batteries, lithium battery anodes, and coal mining, while AI-related concepts experienced a pullback [1] - The ChiNext AI ETF (159381) experienced a slight decline of 0.68%, but its constituent stocks like Tianfu Communication, Advanced Digital Technology, and Runhe Software rose against the trend [1] - The ChiNext AI ETF (159381) has seen a net inflow of 7.04 million yuan over the past five trading days, with a total increase in circulation scale of 22.68 million yuan over the past month [1] Group 2 - Recent quarterly reports from domestic cloud service providers indicate that the demand for computing power may be deferred to the second quarter due to the ongoing iteration needs of large models [2] - The demand for domestic computing chips is expected to experience explosive growth [2]

Investment Rating - The report maintains an "Overweight" investment rating for the electronic industry, indicating a positive outlook for the sector in the next 6 to 12 months [1]. Core Insights - The global AI industry is increasingly focusing on the Middle East, which is expected to boost the demand for global computing chips and infrastructure. The recent lifting of the "AI diffusion rules" by the U.S. government has facilitated significant business agreements between U.S. AI companies and Middle Eastern nations, particularly Saudi Arabia and the UAE [1][2]. - Domestic demand for computing power is on the rise, driven by the ongoing tech competition between China and the U.S. The report emphasizes the need for a self-research approach in the entire computing hardware supply chain to overcome challenges posed by U.S. restrictions [3][8]. - Major Chinese internet companies like Tencent and Alibaba are showing optimistic growth in their AI-related businesses, with significant capital expenditures and revenue growth in AI products. Tencent's capital expenditure reached 27.5 billion yuan, a 91% year-on-year increase, while Alibaba's capital expenditure was 24.6 billion yuan, with a notable 18% year-on-year growth in cloud revenue [3][4]. Summary by Sections Global AI Industry Developments - The U.S. has announced a historic $600 billion investment agreement with Saudi Arabia, which includes a strategic partnership between Saudi AI company Humain and NVIDIA to build an AI factory powered by advanced GPUs [1]. - The UAE has also established a framework for an "AI Acceleration Partnership" with the U.S., which includes significant chip imports and the construction of a 5GW AI data center park [1]. Domestic Market Trends - The report highlights the rapid growth of domestic AI innovation, with companies like Tencent and Alibaba leading the charge. Tencent's AI capabilities have positively impacted its advertising and gaming sectors, while Alibaba's AI-related product revenue has seen triple-digit growth for seven consecutive quarters [3][4]. - The report notes that the demand for computing power is shifting from CPU-based to AI computing, indicating a strong upward trend in revenue growth for AI-related services in the coming quarters [3]. Industry Supply Chain and Challenges - The report identifies key players in the computing hardware supply chain, including companies involved in PCB manufacturing and domestic chip production. It emphasizes the importance of achieving a self-sufficient supply chain to mitigate risks associated with U.S. export restrictions [8][9].

Core Viewpoint - The rapid advancement of AI large models is driving the transition of AI from a supportive tool to a core productivity force, with computing power chips being crucial for training and inference of these models [2]. Group 1: Computing Power Indicators - **Process Technology**: Major overseas companies are utilizing advanced process technologies, with Nvidia's latest Blackwell series using TSMC's 4NP (4nm) technology, while AMD and Intel are at 5nm. Domestic manufacturers are transitioning from TSMC's 7nm to SMIC's 7nm [3][4]. - **Transistor Count and Density**: Nvidia's B200 chip, using Chiplet technology, has a transistor density of 130 million/mm², while Google's TPU Ironwood (TPU v7p) boasts a density of 308 million/mm², significantly higher than competitors [6][7]. - **Performance Metrics**: Nvidia's GB200 achieves FP16 computing power of 5000 TFLOPS, while Google's TPU Ironwood reaches 2307 TFLOPS, showcasing a significant performance gap [10][11]. Group 2: Memory Indicators - **Memory Bandwidth and Capacity**: Most overseas manufacturers are using HBM3e memory, with Nvidia's GB200 achieving a bandwidth of 16TB/s and a capacity of 384GB, significantly surpassing domestic chips that primarily use HBM2e [18][19]. - **Arithmetic Intensity**: Nvidia's H100 has a high arithmetic intensity close to 600 FLOPS/Byte, indicating efficient memory bandwidth usage, while domestic chips exhibit lower arithmetic intensity due to their lower performance levels [20][21]. Group 3: Interconnect Bandwidth - **Interconnect Capabilities**: Overseas companies have developed proprietary protocols with interconnect bandwidth generally exceeding 500GB/s, with Nvidia's NVLink5 reaching 1800GB/s. In contrast, domestic chips typically have bandwidth below 400GB/s, with Huawei's 910C achieving 700GB/s [26][27].

Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Insights - The domestic computing power market is experiencing high demand, leading to accelerated profit release for the company. The net profit attributable to shareholders in Q4 2024 is expected to reach a five-year high. The main business quality is anticipated to continue improving, with the subsidiary Yangtze Computing potentially becoming a new growth driver for the company. Projected net profits for 2025-2027 are estimated at 1.03 billion, 1.34 billion, and 1.62 billion yuan, representing year-on-year growth of 47%, 30%, and 21%, respectively, with corresponding PE ratios of 24x, 19x, and 16x [2][6][11]. Financial Performance - In 2024, the company achieved total revenue of 28.549 billion yuan, a year-on-year decrease of 8.29%. However, the net profit attributable to shareholders was 703 million yuan, an increase of 39.05%. In Q4 2024, total revenue was 7.395 billion yuan, down 13.71% year-on-year, while net profit grew by 74.06% to 309 million yuan [6][11]. Business Development - The company has made significant progress in market expansion and technology development, enhancing its overall strength. It has secured multiple procurement projects from domestic telecom operators and expanded its international market presence, including large multinational clients in Latin America and Europe. The company has also achieved breakthroughs in key technologies in the optical network and chip sectors [11][12]. Strategic Outlook - The company is well-positioned to capitalize on industry recovery opportunities due to its forward-looking technology layout and clear strategic planning. It has incubated five national-level specialized "little giant" subsidiaries and is recognized as a high-tech enterprise with comprehensive capabilities in marine communication technology [11][12].

Core Viewpoint - The company has not experienced any changes in customer orders and continues to operate normally despite uncertainties related to the H20 licensing issue from NVIDIA [2][3]. Group 1: Business Operations and Strategy - The industry chain has been preparing for uncertainties related to H20 since the second half of 2024, and the company believes that current inventory can support normal shipments in the first half of the year [2]. - The company has developed cross-platform R&D capabilities in its data business, allowing it to respond quickly to customer product demands [2]. - The domestic demand for computing power is experiencing robust growth, and the company, as a core supplier to leading internet clients, is expected to maintain its market share and achieve performance growth [2]. Group 2: Revenue Growth and Market Strategy - The company will adhere to a "dual-drive" strategy in its data business, aiming for rapid growth and sustained product competitiveness in the leading internet market while also exploring industry and channel markets [3]. - The company maintains a 3+N+3 business strategy and a 1+5+5 global layout, leveraging its core competitiveness in ODMM, and is confident in achieving significant revenue growth in 2025 [3]. - Despite the uncertainties posed by H20, the company anticipates overall revenue growth of over 20% in 2025, driven by positive growth expectations across various segments including smartphones, laptops, wearables, tablets, and AIoT [3].

DeepSeek 的热度从春节期间开始持续，复工后，各地方政府纷纷组织专项讨论。 （一） 某新一线城市，在过去几年招引了多家芯片设计企业，多数企业都讲的是 AI 的故事。做 GPU 的，做 ASIC 的，做训练的，做推理的，等等等等。 春节期间 DeepSeek 突然爆红的时候，招商局局长乐坏了，心想，这下 AI 行业可稳了。 AI 稳了，算力 芯片应该也就稳了。 我算没白辛苦，过去几年费了那么多劲，撒了那么多母基金的钱，招引了这么多企业。 节后第一天，局长拉下属 开会，讨论如何借着 DeepSeek 的这股风，让当地企业有更好发展，让当地的 招商引资工作有更好的发展。 然后，招商经理小宋耿直发言：领导， DeepSeek 模型特别轻，大幅降低了对算力芯片的依赖。我觉得 DeepSeek 对我市企业，对我市的招商引资工作反而带来巨大挑战。 另外，领导，传言DeepSeek自己也在开发AI芯片。 说完，领导沉默了 ... （二） 北方某城市，当地有一家AI大模型的应用层的企业，春节期间 DeepSeek横空出世，科技局局长就一直 心心念，希望推动政府各部门接入这家企业的产品。 局长大喜，说希望尽快去这家企业拜访 ...