Core Insights - Navitas Semiconductor has introduced a groundbreaking 10 kW DC-DC power platform that achieves up to 98.5% peak efficiency and operates at a switching frequency of 1 MHz, aimed at supporting the expansion of next-generation AI data centers [2][5]. Product Features - The all-GaN 10 kW platform operates from 800 V to 50 V and +/- 400 V to 50 V, utilizing advanced 650 V and 100 V GaNFast FETs in a three-level half-bridge architecture with synchronous rectification, achieving a power density of 2.1 kW/in³ [3][4]. - The platform is designed to simplify the adoption of high-power-density module designs for HVDC AI data centers, integrating auxiliary power and control [4]. Market Implications - The design platform is positioned to facilitate the transition to HVDC data center power infrastructure, which is essential for meeting the increasing power demands of AI workloads that may require 100 to 1,000 times more compute per query [5]. - Key data center customers are currently evaluating the 10 kW DC-DC platform through collaborative development, with its public debut scheduled for the APEC event in March 2026 [5]. Company Overview - Navitas Semiconductor specializes in GaN and SiC power semiconductors, focusing on innovation in AI data centers, performance computing, and energy infrastructure, with over 30 years of combined expertise in wide bandgap technologies [7]. - The company holds more than 300 patents and is recognized as the world's first semiconductor company to achieve CarbonNeutral certification [7].

Summary of Key Points from the Conference Call Industry Overview - **AI Hardware Market**: The AI hardware market is expected to grow significantly, with GPU AI server shipments projected to increase at a 31% CAGR from 2025 to 2027, leading to a total server market value of approximately US$650 billion by 2027 [1][17][20]. - **Data Center Investments**: Over US$800 billion in data center investments are planned, but potential delays may arise due to infrastructure readiness, policy changes, and labor shortages, which could impact AI capital expenditures in 2027 [1][20]. Company-Specific Insights Delta Electronics - **Rating**: Outperform with a price target of NT$1,300. - **Growth**: Expected EPS CAGR of 34% from 2025 to 2027, driven by a broad power portfolio and increased in-house liquid cooling production [5][8]. Luxshare - **Rating**: Outperform with a price target of RMB 74. - **Market Position**: Anticipated to ramp up server component shipments to U.S. customers, benefiting from strong sentiment in the Apple supply chain [5][12]. Chroma ATE - **Rating**: Outperform with a price target of NT$970. - **Long-term Outlook**: Positive long-term prospects due to the ability to capitalize on global tech trends, with EPS estimates raised for 2026-27 [5][9]. Unimicron Technology - **Rating**: Outperform with a price target of NT$270. - **Market Momentum**: Expected strong stock performance in the near term due to favorable substrate pricing and improving HDI yield [5][10]. Quanta Computer - **Rating**: Underperform with a price target of NT$250. - **Challenges**: Anticipated margin pressures due to the buy-sell model for AI servers, with AI server mix expected to represent 60%-65% of total revenue in 2026-27 [5][11]. Sunny Optical - **Rating**: Outperform with a price target of HK$88. - **Revenue Mix**: Growth in non-smartphone revenue is expected to support margins, despite concerns over memory pricing impacts [5][13]. Largan Precision - **Rating**: Market-Perform with a price target of NT$2,600. - **Short-term Opportunity**: Tactical long opportunity ahead of the iPhone 18 launch, but long-term caution due to limited diversification beyond smartphones [5][14]. Market Dynamics - **Power Components**: The total addressable market (TAM) for NVIDIA server power components is expected to grow by 70-85% year-over-year in 2026-27, with strong demand for liquid cooling and HDI providing margin support for leading suppliers [2][31]. - **Competition**: Rising competition in cooling components is expected to pressure pricing in the second half of 2026, particularly if NVIDIA standardizes the L10 board for Vera Rubin [2][32]. Consumer Electronics Insights - **Apple vs. Android**: The Apple supply chain is viewed as more attractive than Android's, with iPhone shipments expected to grow at a low-to-mid-single digit rate in 2026-2027, driven by new product launches and enhanced AI features [3][39]. - **AI Glasses Market**: The market for AI glasses is projected to grow significantly, with shipments expected to reach approximately 10 million units in 2025 and close to 20 million by 2029 [41][50]. Investment Implications - **Overall Sentiment**: The investment sentiment remains positive for companies like Delta, Luxshare, and Chroma, while caution is advised for Quanta due to margin pressures. The overall outlook for the AI hardware market is robust, with significant growth expected in the coming years [5][8][12][11].

Investment Rating - The report indicates a positive outlook for the data center infrastructure industry, suggesting that it is too early to fade the current infrastructure cycle, which has accelerated significantly recently [1][2]. Core Insights - The data center infrastructure build-out is progressing beyond expectations, with a large pipeline indicating demand far exceeding supply, and a projected annual run rate of over 12 GW pre-leased by 2025 [2][3]. - The industry is consolidating on cooling technologies, with major players enhancing their offerings in liquid cooling systems, which are becoming foundational for future data center operations [3][7]. - The report highlights that two-thirds of new capacity is driven by AI build-outs, emphasizing the critical role of AI in fueling incremental demand for data center infrastructure [7][8]. Summary by Sections Industry Overview - The current cycle is described as year 2 of a 7-year cycle, with expectations of over 6 GW being turned on this year, and significant future demand indicated by pre-leasing activity [2][4]. - The report notes that construction lead times will prevent a rapid overbuilding scenario, as physical constraints in construction remain significant [2][3]. Technology Trends - The industry is witnessing a shift towards higher voltage and DC architectures, which could disrupt traditional components and enhance efficiency [3][7]. - Liquid cooling is projected to grow from 10% to 20-30% of the value in thermal management systems, indicating a significant market opportunity for advanced cooling solutions [13][15]. Company Positioning - VRT is identified as a well-positioned industry leader, with strong pipelines and customer demand, while ETN is expected to gain market share following strategic acquisitions [4][7]. - JCI is focusing on technical differentiation and manufacturing capacity, with a robust backlog and pipeline indicating strong demand for their solutions [12][15]. Market Dynamics - The report emphasizes the importance of power availability as a natural constraint against overbuilding, with local government support playing a role in mitigating resistance to new data center projects [7][8]. - The competitive landscape is evolving, with new entrants and increased commoditization driven by standardization efforts, particularly from major players like NVIDIA [7][8].

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the **Data Center Infrastructure** industry, particularly the developments and trends in cooling and power solutions for data centers, with a positive outlook on demand and infrastructure spending [1][4][9]. Core Insights and Arguments - **Strong Demand and Infrastructure Commitment**: The demand for data center infrastructure remains robust, with capital spenders committed to long-term investments, driven by productivity and diverse business models [1][4]. - **Technology Evolution**: Continuous advancements in cooling (CDUs) and power (HVDC) technologies are favoring major players, with larger format solutions becoming more prevalent. Smaller vendors are struggling to compete due to price pressures [1][4][9]. - **Competitive Landscape**: The competition is increasingly concentrated among larger, established players, with a growing moat around successful technology providers. The bear case of disruption and price pressure is being challenged by the emergence of critical partnerships and solutions [1][4][9]. - **AI and Infrastructure**: AI applications are driving demand for data centers, with companies like Microsoft highlighting the need for infrastructure that can support evolving AI workloads. The current demand exceeds supply, reinforcing the need for continued infrastructure investment [9][11]. Company-Specific Highlights Vertiv (VRT) - **Product Offerings**: Vertiv showcased AI-ready racks, modular power solutions, and advanced liquid cooling systems, emphasizing their comprehensive technology portfolio across power, cooling, and modular solutions [5][6]. - **Service Capabilities**: Vertiv has built a significant service organization with over 4,400 technicians globally, enabling them to provide lifecycle services and rapid response to customer needs [11][12]. - **Innovative Solutions**: The introduction of predictive maintenance services and advanced fluid management capabilities positions Vertiv as a leader in optimizing data center operations [12][11]. - **Power Management**: Vertiv is actively supporting the transition to 800V power systems, which will enhance efficiency and scalability for future data center architectures [13][9]. nVent - **New Product Launches**: nVent introduced a new portfolio of modular data center liquid cooling solutions, emphasizing reliability and user experience through a common control platform [18][19]. - **Market Positioning**: The company is participating in initiatives like Project Deschutes to accelerate liquid cooling adoption, positioning itself as a key player in the evolving data center landscape [20][19]. Motivair (Schneider Electric) - **Growth Projections**: Motivair is expected to achieve around $300 million in revenues, reflecting over 100% growth from the previous year, driven by its end-to-end liquid cooling portfolio [22]. - **Integration with Schneider**: The integration with Schneider Electric enhances Motivair's capabilities in deploying optimized electrical infrastructure alongside liquid cooling solutions [22]. Modine - **Innovative Chiller Design**: Modine announced a new stainless steel variant of its TurboChill DCS chiller, designed for high-pressure environments and optimized for liquid cooling systems [26]. - **Market Demand**: The company is experiencing strong demand, with significant orders anticipated from innovative hyperscalers, projecting potential revenues in the $250 million range [26]. Eaton - **HVDC Transition**: Eaton is preparing for the HVDC transition with new products and technologies that will support future data center power needs [27][28]. Boyd - **Advanced Cooling Technologies**: Boyd showcased its Chip to Ambient thermal circuit, designed to optimize energy consumption in liquid cooling systems for AI applications [29][30]. Additional Important Insights - **Market Dynamics**: The data center infrastructure market is witnessing a shift towards larger, more efficient cooling solutions, with significant growth expected in the adoption of CDUs and liquid cooling technologies [36]. - **Collaboration and Partnerships**: Companies are increasingly forming partnerships to enhance their product offerings and address the challenges of high-density computing environments [19][22]. - **Future Trends**: The industry is moving towards more integrated solutions that combine power and cooling, with a focus on modularity and scalability to meet the demands of modern AI workloads [25][29]. This summary encapsulates the key points discussed during the conference call, highlighting the positive outlook for the data center infrastructure industry and the strategic positioning of major players within it.