Investment Rating - The industry investment rating is "Outperform the Market" [6] Core Insights - The launch of the "Zhenwu 810E" AI chip by PingTouGe has enabled over 400 clients, including Xiaopeng Motors, showcasing a comprehensive self-research layout from top-tier chips to cloud and large models [1] - The collaboration between Xiaopeng Motors and Alibaba Cloud has established the largest autonomous driving computing center in China, significantly reducing the training time for autonomous driving models from 7 days to under 1 hour [2] - The Zhenwu 810E chip addresses critical needs in autonomous driving training with massive memory and strong interconnect capabilities, supporting large model training essential for advanced AI applications [4] Summary by Sections Industry Overview - The report highlights the rapid development of domestic autonomous driving computing capabilities, with a focus on the Zhenwu 810E chip's deployment in large-scale clusters [1][4] Market Data - The industry comprises 461 constituent stocks with a total market capitalization of 78,455 billion, a circulating market value of 40,598 billion, and an average price-to-earnings ratio of 61.45 [4] Performance Metrics - The absolute returns over 1 month, 3 months, and 12 months are 6%, 6%, and 57% respectively, indicating strong performance relative to the market [6]

Core Insights - VNET Group, Inc. has secured a 40MW wholesale order from a leading internet company for its new Gu'an IDC Campus in the Greater Beijing Area, highlighting its strong market position and execution capabilities [1][2] - The Gu'an IDC Campus is strategically located to meet the increasing demand for AI-driven services and advanced computing, providing significant geographic advantages and easing resource constraints for Beijing's internet companies [2] Company Overview - VNET is a leading carrier- and cloud-neutral internet data center services provider in China, offering hosting, IDC services, cloud services, and business VPN services to enhance the reliability and speed of internet infrastructure [3] - The company operates in over 30 cities across China, serving a diverse customer base of more than 7,000 enterprise clients, including internet companies, government entities, and small to mid-sized enterprises [3] Strategic Initiatives - VNET plans to implement advanced liquid cooling solutions for the new order, which will lower energy consumption and optimize power utilization efficiency, ensuring a better annual average power usage effectiveness (PUE) than the regional average [2] - The company aims to strengthen its delivery capabilities to capture growth opportunities in the domestic chip sector, which is seen as a crucial growth engine for its IDC business [2]