performance from Oracle in your mind does that cement the idea that investors are going to put money in the AI trade or do you think today for Oracle and some of these other names is it more of a one-off and do we go back to the broadening I think it's just yet another confirmation that the AI revolution is alive and well we learned from Nvidia about the growth in their data center business now we're hearing from Oracle about the growth of their cloud business a th00and% revenue growth that's pretty good Fr ...

Ruijie Networks (301165.SZ): Data center switch drives growth ahead; 2Q25 beat; TP up to Rmb103.1; Buy With 2Q25 revenues growing 62% QoQ and 42% YoY, beating our estimate by 24%, we are positive on the strong delivery of the company riding on the AI data center investment trend. For 3Q25, we expect revenues to continue to grow by 33% YoY/ 8% QoQ, with GM remaining stable at 30.2% reflecting the rising exposure to data center whitebox switch. Maintain Buy with TP up to Rmb103.1 (from Rmb90.7). 2Q25 beat: Ru ...

Core Insights - GAIB announced a strategic investment of $10 million USD led by Amber Group, aimed at enhancing institutional participation in the AI compute economy through tokenized GPU assets [1][3] - The investment signifies a growing trend of institutional capital flowing into AI infrastructure via onchain financial systems, facilitating access to AI yields for everyday investors [3][4] - GAIB's growth in 2025 includes $28 million in deposits across AID Alpha vaults and new integrations with DeFi protocols, indicating a robust expansion in the AI and crypto sectors [4] Company Overview - GAIB is positioned as the first economic layer for AI and compute, transforming GPU-backed assets into yield-generating opportunities, allowing investors to access the AI economy while earning real yield [5] - The company provides capital solutions for cloud providers and data centers, optimizing their access to compute resources and bridging AI with blockchain finance [5] - GAIB's AI synthetic dollar, AID, enables passive income through staking while maintaining liquidity, promoting broader participation in AI-driven financial markets [5] Strategic Partnerships - Amber Group, a global leader in digital assets, is backing GAIB's initiative, reflecting a belief in the convergence of AI, blockchain, and capital markets [4][6] - The investment from Amber Group is seen as a catalyst for the next wave of onchain compute infrastructure, aimed at building an inclusive AI economy [4][8] - Amber Group's expertise in both crypto and traditional markets positions it to leverage AI and blockchain for innovative financial solutions [8]

Investment Rating - The report maintains a "BUY" rating on Innolight, indicating a potential return of over 15% over the next 12 months [1][18]. Core Insights - Innolight reported a strong 1Q25 performance with revenue increasing by 38% year-over-year (YoY) to RMB6.7 billion, driven by global cloud capital expenditures and demand for 400G/800G optical transceivers [1]. - The net profit (NP) rose by 57% YoY to RMB1.6 billion, attributed to growth in orders and improved margins, with a gross profit margin (GPM) of 36.7%, significantly above the Bloomberg consensus of 31.9% [1]. - The target price (TP) has been revised to RMB151 based on a 21.5x 2025E P/E, reflecting rising geopolitical uncertainties and lower sector sentiment [1][3]. Financial Performance - Revenue projections for FY25E are set at RMB35,008 million, representing a 46.7% YoY growth, following a 122.6% growth in FY24A [2][8]. - The gross margin is expected to improve to 35.3% in FY25E, with net profit projected at RMB7,721.8 million, a 49.3% increase YoY [2][8]. - The company's earnings per share (EPS) for FY25E is estimated at RMB7.02, with a P/E ratio of 11.6x [2][8]. Market Position and Outlook - Innolight is positioned as a key beneficiary of AI infrastructure investments, with expectations of solid demand for 400G/800G products from both domestic and overseas cloud service providers [7]. - The management anticipates a recovery in 400G shipments supported by rising domestic cloud capital expenditures, despite a temporary decline [7]. - The company has mitigated tariff risks through its offshore manufacturing capacity in Thailand, which benefits from zero-tariff treatment under current trade rules [7].

Summary of Innolight (300308.SZ) 4Q24 Preliminary Results Company Overview - **Company**: Innolight (300308.SZ) - **Industry**: Data Center Solutions and AI Infrastructure Key Financial Results - **4Q24 Revenue**: Increased by 78% YoY to Rmb6.5 billion, which is 17% and 10% below CitiE and VAe estimates respectively [1][2] - **4Q24 Pre-tax Profit**: Rose by 60% YoY to Rmb1.7 billion, 18% and 12% lower than CitiE and VAe estimates [1][2] - **4Q24 Net Profit**: Increased by 62% YoY or 2% QoQ to Rmb1.4 billion, 15% and 8% below CitiE and VAe estimates [1][2] Market Concerns - Recent share price weakness attributed to: - Potential peaking of overseas AI infrastructure investment due to cost efficiency improvements from open-sourced models like DeepSeek [1][2] - Uncertainty regarding the 1.6T outlook due to GB200/GB300 developments [1][2] - Anticipation of CPO product launches during GTC [1][2] - Expectations may reset post-GTC/OFC with updates on GB300 and CSPs stance over CPO, potentially leading to a turnaround if outcomes are better than feared [1][2] Strategic Developments - Formation of a joint venture with Guangdong HEC Technology, where Innolight will hold 51% share, focusing on liquid cooling solutions for data centers [3] - This move indicates Innolight's ambition to diversify its business into other data center-related products [3] Valuation and Investment Outlook - **Target Price**: Rmb215, based on a 22x FY25E Forward PE, reflecting a -0.5 standard deviation of the 3-year average due to anticipated slower FY26 growth and concerns over peaking AI capital expenditures [4][7] - **Expected Share Price Return**: 113.1% with an expected dividend yield of 1.6%, leading to a total expected return of 114.7% [4] Risks - Downside risks include: - Slower-than-expected data center investments [8] - Weaker-than-expected telecom market expansion [8] - Margin pressures from price competition [8] - Intensifying China-US tech disputes [8] Conclusion Innolight's strong revenue and profit growth in 4Q24 align with previous guidance, but market concerns regarding AI infrastructure investment and product launches may impact share price. Strategic partnerships and a robust target price suggest potential for significant returns, albeit with notable risks.

Core Points - Google plans to cut employees in its "People Operations" and cloud organizations as part of internal reorganizations, offering a voluntary exit program to U.S.-based full-time employees in People Operations starting in early March [1][2] - The company aims to drive cost-cutting measures while expanding spending on AI infrastructure in 2025, following a fourth-quarter revenue report that missed expectations [2] - Employees at level 4 and level 5 in People Operations may receive a severance package of 14 weeks of salary plus one additional week for each full year of service [2] - Cuts have also been made within the cloud unit, primarily affecting operations support staff, with some roles being relocated to other countries [3] - Google emphasizes that these reorganizations are part of the normal course of business and aims to operate more efficiently while investing in significant opportunities [4][3] - The company is providing support to impacted employees, including time to explore and apply for different roles within Google [5]