Core Viewpoint - The recent inclusion of 54 Chinese entities, including major server companies, on the U.S. Entity List is expected to impact the AI infrastructure and server market in China, potentially leading to increased prices and supply chain challenges [2][4][7]. Group 1: Impact of U.S. Entity List Inclusion - The U.S. Department of Commerce has added 54 Chinese entities to its Entity List, affecting companies in high-performance computing and quantum technology [2]. - Notable companies affected include Inspur Group and its subsidiaries, which may face restrictions in acquiring critical AI chips from U.S. suppliers [4][5]. - Following the announcement, Inspur's stock price fell by 2.89%, indicating a relatively calm market reaction, as companies had anticipated this outcome [3]. Group 2: Market Dynamics and Responses - The inclusion on the Entity List is expected to compel affected companies to seek alternative solutions, potentially fostering domestic innovation in server technology [7]. - Despite the challenges, some industry experts believe that there are still channels to acquire AI servers, although costs are likely to rise due to reduced supply options [8]. - The server market share data indicates that Inspur ranks second globally and first in China, while Ningchang also holds a top position domestically, highlighting their significance in the AI server market [7]. Group 3: Future Implications - The restrictions on U.S. chip purchases will likely increase operational costs for domestic companies relying on NVIDIA GPUs, which are already in high demand [8]. - There are concerns that the potential ban on NVIDIA's H20 GPU in China could further escalate costs and hinder the development of AI infrastructure [8].