Investment Rating - The report assigns an "Overweight" investment rating [2][12]. Core Insights - The report highlights that domestic AI computing power is expected to continue improving, suggesting a focus on domestic AI computing-related stocks [5]. Summary by Sections - **Product Roadmap**: Huawei plans to launch the new Ascend 950PR chip in Q1 2026 and the Ascend 970 chip in Q4 2028. The world's strongest super node, Atlas 950 SuperPoD, is expected to be launched in Q4 2025 [4][7]. - **Performance Metrics**: The Ascend 970 chip will have a computing power of 4 PFLOPS (FP8) / 8 PFLOPS (FP4) and a memory capacity of 288 GB with a bandwidth of 14.4 TB/s. In comparison, NVIDIA's Blackwell Ultra GB300 has a computing power of 15 PFLOPS (FP4) [7]. - **Deployment and Client Base**: As of September 18, 2025, CloudMatrix has deployed over 300 super nodes, serving more than 20 clients [7]. - **Open Hardware and Software**: Huawei is committed to open hardware and software, allowing the industry to develop related products based on its technology specifications. The operating system components will be open-sourced, enabling users to integrate and maintain their versions [7].

Core Viewpoint - Huawei's CEO Ren Zhengfei emphasized the importance of research and development (R&D) investment, stating that the company invests 180 billion yuan annually, with 60 billion yuan allocated to basic theoretical research and 120 billion yuan focused on product development [1] R&D Investment - The company invests 180 billion yuan in R&D each year, with approximately 60 billion yuan dedicated to basic theoretical research that is not subject to performance assessment [1] - About 120 billion yuan is allocated to product development, which is subject to performance evaluation [1] Chip and Software Strategy - Ren Zhengfei indicated that there is no need to worry about chip issues, as methods like stacking and clustering can yield results comparable to the most advanced levels [1] - In terms of software, he mentioned that a multitude of open-source software solutions will meet societal needs in the future [1]