Core Viewpoint - The successful IPO application of Moer Technology, known as "the domestic Nvidia," highlights the growing importance of AI and GPU technology in China's digital economy and the government's supportive policies for innovation in this sector [1][2]. Company Overview - Moer Technology was established in 2020 and focuses on the research, design, and sales of full-function GPUs and related products, aiming to provide computing acceleration platforms for high-performance computing fields such as AI and digital twins [4]. - The company has launched four generations of GPU architecture chips from 2021 to 2024, with products that have achieved performance metrics close to or at international advanced levels [4][5]. Market Context - The global GPU market is projected to reach 3.6 trillion yuan by 2029, with China's GPU market expected to grow from 1.36 trillion yuan in 2024 to 37.8% of the global market share [2]. - The AI chip market in China is anticipated to grow at a compound annual growth rate of over 50%, with GPUs being one of the fastest-growing segments [2]. Financial Performance - In the first half of 2025, Moer Technology achieved a revenue of 702 million yuan, surpassing the total revenue from 2022 to 2024, which was approximately 608 million yuan [7]. - The company has attracted significant investment, with over 10 well-known investment institutions participating, raising more than 10 billion yuan [7]. IPO Details - Moer Technology's IPO application was approved in just 88 days, reflecting the supportive regulatory environment for tech companies [1]. - The company plans to raise 8 billion yuan through its IPO to fund projects related to next-generation AI training and inference chips, graphics chips, and smart SoC chips [9]. Ownership Structure - Moer Technology does not have a single shareholder owning more than 30% of the company, with the founder holding 11.06% directly and controlling 36.36% of the shares through agreements [8].

Company Insights - OpenAI has signed a hardware manufacturing agreement with Luxshare Precision, planning to launch its first consumer device by the end of 2026 [2] - Luxshare Precision may not be the only Apple supplier involved, as GoerTek is also expected to provide speaker modules for OpenAI's first consumer hardware product [2] - Sunflower plans to acquire 100% equity of high-end semiconductor materials company Xipu Materials [12] Industry Insights - The State Council's Food Safety Office is accelerating the formulation of national standards for prepared dishes and promoting their use in the catering sector to better protect consumer rights [3] - The demand for high-performance computing chips is expected to surge due to the rapid development of AI and autonomous driving applications, increasing capital attention on the GPU industry chain [9] - The 11th batch of drug procurement has introduced a "no internal competition" rule, optimizing procurement rules to avoid excessive low-price competition and ensuring product quality and reasonable profit margins for generic drug companies [10] - The Democratic Republic of Congo has extended its cobalt export ban, which may lead to a significant increase in cobalt prices as inventory depletion accelerates [11]

Group 1 - OpenAI's upcoming GPT-5 model is expected to achieve gold medal level at the 2025 International Mathematical Olympiad, marking a significant breakthrough in general reinforcement learning and computational scaling [1] - The competition in large model development is intensifying, with ongoing investments in computing infrastructure [1] Group 2 - Nvidia has announced the resumption of H20 sales in China but has no plans to restart production, indicating limited inventory for the newly customized AI chips [2] - Domestic GPU manufacturers are making strides, with Lishan Technology set to launch its self-developed 6nm GPU on July 26, designed for high-performance graphics rendering and AI applications [2] Group 3 - Nvidia's stock price continues to reach new highs, with a market capitalization exceeding $4.2 trillion as of July 18, driven by strong demand and capacity expansion in the domestic supply chain [3] - Core supply chain companies are expanding capacity, including NewEase, which anticipates sustained high demand in the optical module sector [3] Group 4 - Key players in computing infrastructure span across chips, servers, optical modules, and data centers, covering the entire industry chain from hardware manufacturing to foundational services [4] - Major companies in the chip sector include Haiguang Information, a leader in domestic CPU and DCU chips, and Cambrian, known for AI chips suitable for large model training [5] Group 5 - In the server sector, Zhongke Shuguang leads in liquid cooling technology with a PUE value as low as 1.04, while Inspur holds a 47% market share in global AI servers [6][7] - In the optical module sector, companies like Zhongji Xuchuang and NewEase are leading with significant market shares and innovative technologies [8][9] Group 6 - In the data center and infrastructure space, Unisplendour provides comprehensive computing solutions with a revenue of 70 billion yuan, while DataPort is benefiting from the construction of the Yangtze River Delta hub [10] - Other notable companies include Runze Technology, a hidden champion in the Beijing-Tianjin-Hebei region, and Hengrun Co., which is involved in power leasing and the Eastern Data Western Computing project [11][12]

Investment Rating - The report maintains an "Overweight" rating for the communication industry [5] Core Insights - The upcoming release of GPT-5 signifies a new wave of competition in large models, with significant investments in computing infrastructure expected to continue [9][10] - NVIDIA's stock price continues to reach new highs, with a market capitalization exceeding $4.2 trillion as of July 18, indicating strong demand in the domestic supply chain [11] Summary by Sections Industry Overview - The communication industry is experiencing a sustained high level of demand, particularly in sectors such as optical modules and PCB manufacturing [11] - Domestic GPU manufacturers are making strides in replacing foreign products, with companies like Lishan Technology set to launch a self-developed 6nm GPU [10] Key Companies to Watch - Suggested companies for investment consideration include: 1. Servers: Industrial Fulian, Huaqin Technology 2. Optical Modules: Zhongji Xuchuang, Xinyi Sheng, Taicheng Light 3. PCB: Shenghong Technology, Huitian Technology, Shengyi Technology 4. Copper Interconnect: Zhaolong Interconnect, Changxin Bochuang 5. GPU: Cambrian, Haiguang Information [11]