Core Insights - The report by Shenwan Hongyuan highlights a significant shift in computing power demand from single-point solutions to system-level integration, driven by the explosive growth of model parameters [1] - Two core dimensions for expanding computing power are identified as Scale-up and Scale-out, which will reshape the computing power industry chain and create investment opportunities [1] Group 1: Scale-up and Scale-out - Scale-up refers to increasing the number of GPUs within a single node, moving beyond traditional single-server limitations to a "super node" era, enabling full interconnectivity of GPUs [1][2] - Scale-out focuses on increasing the number of nodes, allowing for elastic expansion to support loosely coupled tasks like data parallelism, with essential differences in protocol stacks, hardware, and fault tolerance mechanisms [1][2] Group 2: Industry Trends and Mergers - Major chip manufacturers like NVIDIA, Broadcom, Huawei, and Haiguang are expected to deepen their focus on the Scale-up domain, while Ethernet technologies will concentrate on Scale-out [2] - Haiguang Information's planned merger with Zhongke Shuguang reflects the trend of vertical integration in the AI chip sector, aiming to enhance capabilities across communication, storage, and software [3] Group 3: Market Dynamics and Opportunities - AI chip manufacturers are not expected to enter the foundry business, as seen with AMD's divestment of its foundry operations post-acquisition of ZT System [4] - The industry chain may further differentiate into card design foundry suppliers and cabinet foundry suppliers, with card design capabilities becoming a key differentiator for value capture [4] - Companies to watch in this evolving landscape include Haiguang Information, Zhongke Shuguang, Inspur Information, Unisplendour, Digital China, Lenovo Group, and Huaqin Technology [4]