Summary of Conference Call Notes Industry Overview - The focus is on the Taiwan ODM/Brands sector, particularly companies involved in the AI servers and PCs supply chain, including Quanta, Wiwynn, Wistron, Gigabyte, ASUS, Inventec, Pegatron, and Compal [1][2]. Key Insights Revenue Projections - **Monthly Revenue Growth**: Expected average revenue growth for the 10 companies is projected at -4% in July, +2% in August, and +8% in September 2025. Apple's supply chain is anticipated to outperform with Hon Hai at +7% and Pegatron at +9% in July due to new smartphone models [3]. - **Year-over-Year Revenue Growth**: Projected average revenue growth for July, August, and September 2025 is +41%, +30%, and +26%, respectively. Wiwynn is expected to lead with +152% YoY growth in July [4]. Company-Specific Insights - **Hon Hai**: Expected to see 3Q25 revenues grow 4% YoY and 7% QoQ to NT$1,927 billion, driven by AI server ramp-up and new smartphone launches. June revenues were 3% below estimates due to declines in consumer electronics [17]. - **Quanta**: Anticipated 3Q25 revenues to grow 29% YoY and 9% QoQ to NT$548 billion, supported by AI server ramp-up. June revenues exceeded estimates by 9% [24]. - **AVC**: Expected 3Q25 revenues to grow 69% YoY and 9% QoQ to NT$32 billion, driven by rising liquid cooling penetration in ASIC AI servers. June revenues were 25% higher than estimates [38]. - **Wiwynn**: Projected 3Q25 revenues to grow 126% YoY to NT$221 billion, supported by demand for ASIC AI servers. June revenues were 28% higher than estimates [43]. Market Dynamics - **AI Server Demand**: The ramp-up of rack-level AI servers and increasing penetration of liquid cooling technologies are key drivers for revenue growth across the sector [1][4]. - **Consumer Electronics Impact**: The consumer electronics market is facing uncertainties due to tariff issues, affecting companies like Pegatron and Compal, which are expected to post negative revenue growth YoY [4]. Additional Considerations - **Risks**: Key risks include slower-than-expected ramp-up of AI servers, weaker performance in EV solutions, and increased competition in consumer electronics [22][42]. - **Earnings Revisions**: Companies like Wiwynn and Quanta have seen upward revisions in revenue and net income forecasts due to better-than-expected demand for AI servers [49][28]. Conclusion - The Taiwan ODM/Brands sector is poised for significant growth driven by advancements in AI server technology and new product cycles, particularly in the smartphone market. However, companies must navigate challenges related to consumer electronics demand and competitive pressures.

Core Insights - Super Micro Computer (SMCI) is expected to report its fourth-quarter fiscal 2025 results on August 5, with a focus on its server and storage business driven by demand from hyperscalers, high-performance computing, and AI customers [1][2] Group 1: Business Performance - The Server and Storage Systems segment is a key driver of SMCI's financial strength, with increasing demand for GPU-optimized servers for AI workloads contributing significantly to its success [3] - SMCI's integration of Intel Gaudi, NVIDIA Blackwell Chips, and AMD processors is anticipated to attract more customers in high-performance computing, AI, and hyperscale markets [3][4] - The early availability of systems based on NVIDIA's new Blackwell GPU architecture, along with strong performance from Hopper-based systems, is expected to enhance the segment's momentum [4] Group 2: Market Trends - The expansion of SMCI's Datacenter Building Block Solutions is likely to have increased adoption among enterprises and hyperscalers, providing a comprehensive solution for servers, storage, networking, and cooling [4] - There is strong customer interest in both air-cooled and direct liquid cooling (DLC) rack-scale platforms, which are crucial for the next phase of AI data center expansion [5] - Leadership in DLC technology is a competitive advantage for SMCI, as data centers are increasingly adopting these solutions to meet energy efficiency and density requirements [5] Group 3: Financial Outlook - Despite strong demand, some customers are delaying orders for newer AI platforms like NVIDIA's Blackwell, which may negatively impact SMCI's order book for the upcoming quarter [6] - Margins are expected to remain under pressure due to factors such as customer mix, competitive pricing, and rising costs associated with DLC AI GPU cluster deployments [6][7] - However, strong top-line growth in the Server and Storage Systems business is anticipated to partially offset earnings challenges [7]

Market Overview - The market experienced a day of volatility with all three major indices falling over 1% [1][2] - Overall, the market showed a trend of fluctuating upward this month, with all three indices closing higher on a monthly basis; the ChiNext Index rose over 8% this month, while the Shanghai Composite Index fluctuated around 3600 points [1] Trading Volume and Market Sentiment - The total trading volume in the Shanghai and Shenzhen markets reached 1.94 trillion yuan, an increase of 91.7 billion yuan compared to the previous trading day [1] - Market sentiment was mixed, with more than 4200 stocks declining, indicating a lack of strong bullish momentum [1] Sector Performance - The innovative drug concept sector showed strength, with stocks like Nanxin Pharmaceutical hitting the daily limit [1] - AI application stocks remained active against the trend, with companies like Yidian Tianxia also hitting the daily limit [1] - AI hardware stocks exhibited mixed performance; the liquid cooling server concept was strong, with stocks like Yingweike hitting the daily limit [1] - Conversely, cyclical sectors such as steel and non-ferrous metals collectively weakened, with Anyang Steel dropping over 7% [1] - The financial sector was sluggish, with Zhongyin Securities falling over 5% [1] - Sectors with notable gains included assisted reproduction, liquid cooling IDC, Xinchuang, and Huawei Ascend, while sectors with significant declines included steel, coal, non-ferrous metals, and film [1]

Market Overview - A-share market shows divergence with resource cyclical stocks experiencing significant pullback, causing the Shanghai Composite Index to fall below 3600 points; AI-related hardware and software sectors saw a collective rise, boosting the ChiNext Index [1][3] AI Sector Performance - AI-related hardware and software sectors, including liquid cooling servers, AI agents, and PCB, exhibited strong gains; leading AI server company, Industrial Fulian, hit the daily limit and reached a historical high with a market capitalization exceeding 700 billion yuan [3][10] - Notable stocks in the liquid cooling server concept include Sihuan New Materials, Yingweike, and Chunzong Technology, all achieving daily limit increases [5][6] Resource Sector Performance - Resource cyclical stocks, which led gains last week, faced high-level corrections; sectors such as steel, non-ferrous metals, and chemicals saw significant declines, with steel stocks dropping over 3% and individual stocks like Anyang Steel and Baosteel falling more than 5% [15][16] - In the futures market, several previously popular commodities, including glass and coking coal, dropped over 6%, while lithium carbonate fell by 6% [16][17] Regulatory Changes - The Dalian Commodity Exchange announced adjustments to trading limits for certain futures contracts, including industrial silicon, polysilicon, and lithium carbonate, to maintain market stability [17]

华泰证券：AI进入落地新阶段，服务器和机器人产业火热 金十数据7月31日讯，华泰证券研报表示，基于本次WAIC 2025实地调研，对AI大模型产业链形成四个 判断：1）行业进入Token增长驱动的新阶段，AI Agent在垂直场景应用显著丰富，涵盖办公、医疗、金 融等多个领域，关注应用落地机会；2）服务器算力需求持续增长，各厂商重点推广基于大模型的后训 练和推理算力服务，技术迭代带来重估机会不变；3）生成式AI发展呈现2B领先2C、应用领先终端的特 征，B端商业化进展明显快于C端消费级产品；4）国内外厂商形成良性竞争推动行业进步。 ...

人民财讯7月30日电，7月30日晚，SuperX(NASDAQ：SUPX)公告宣布正式发布最新旗舰产品XN9160- B200AI服务器，该服务器搭载英伟达最新一代Blackwell架构GPU(B200)，旨在满足客户对人工智能 (AI)、机器学习(ML)和高性能计算(HPC)应用程序的高性能和可扩展性的算力需求，该服务器的推出标 志着SuperX在AI基础设施领域迈出关键一步。 ...

Core Insights - The 2025 World Artificial Intelligence Conference (WAIC2025) has commenced in Shanghai, showcasing significant advancements in AI computing infrastructure [1] - Digital China, through its brand KunTai, has launched two innovative products: the KunTai R624K2 training and inference integrated server and the KunTai R622K2 inference server, both based on the Kunpeng technology [1][2] - These products are designed to enhance computing power and cost-effectiveness, aiming to redefine AI computing infrastructure and support the industrialization of large models [1] Product Features - The KunTai R624K2 server supports up to 10 mainstream AI accelerator cards, achieving a twofold improvement in computing and data transmission efficiency compared to previous models [1] - The KunTai R622K2 server features a high computing density, supporting four full-height, full-length accelerator cards within a 2U space, catering to various industries such as internet, finance, and electricity [2] - Both products are designed to facilitate high-performance computing, big data analysis, and AI-generated content (AIGC), thereby empowering industries to leverage large model training and inference [1][2] Strategic Partnerships and Market Trends - Digital China collaborates with Huawei as a partner in the "Kunpeng + Ascend" ecosystem, ensuring deep integration of hardware and software for maximum performance [2] - The launch of these products aligns with industry forecasts predicting a continuous increase in domestic computing power demand for large models by 2025, highlighting the significant potential of the domestic server market [2] - The introduction of these innovative products is a strategic move to alleviate "computing power anxiety" across various sectors, promoting a transition to an AI-driven intelligent era [2]

Group 1 - Digi Power X has filed a provisional utility patent for its ARMS 200 modular data center platform, naming Super Micro Computer as the exclusive server supplier with an order expected in Q4 2025 [3][6] - Digi Power X aims to retrofit underutilized energy assets in remote areas to power new AI data centers, positioning itself as a neocloud provider similar to CoreWeave or Nebius [4] - The flagship project for Digi Power X and Supermicro will be located in Columbiana, Alabama, with a launch date set for Q1 2026 [5] Group 2 - Super Micro Computer's shares rose by 10.2% following the announcement of its partnership with Digi Power X [1] - The selection of Supermicro as the exclusive server provider indicates the company may possess advanced technology, particularly with the new Nvidia Blackwell systems [6] - Supermicro has been promoting its own modular "Data Center Building Block Solutions (DCBBS)" technology, which aligns with Digi Power X's modular approach [7]

Core Insights - Dell Technologies is experiencing a decline in gross margin, which contracted 80 basis points year over year to 21.6% in Q1 FY26, primarily due to competitive pricing and an unfavorable geographical mix in traditional servers [2][11] - The Infrastructure Solutions Group (ISG) segment is a key driver for Dell's overall gross margin performance, with ISG revenues growing 12% year over year to $10.3 billion, and record server and networking revenue of $6.3 billion, up 16% year over year [3][11] - Dell's AI-optimized server orders increased significantly, with $12.1 billion in orders and a healthy backlog of $14.4 billion, indicating strong demand in the AI sector [4] Financial Performance - Dell expects gross margin dollars to increase by 10% quarter over quarter in Q2 FY26, driven by strong ISG performance and anticipated shipments of $7 billion worth of AI servers [5][11] - The Zacks Consensus Estimate for Q2 FY26 earnings is $2.28 per share, reflecting a year-over-year increase of 20.63%, while the estimate for 2025 earnings is $9.44 per share, suggesting 15.97% year-over-year growth [15] Competitive Landscape - Dell faces stiff competition from Hewlett Packard (HPE) and Super Micro Computers (SMCI), both of which are benefiting from robust demand for AI-optimized servers and evolving their business models to enhance margins [6][7][8] - HPE's multi-billion-dollar investment plan aims to diversify its business beyond servers, while Super Micro is transitioning to a full IT solutions provider, bundling various services to improve revenue per deal and customer retention [7][8] Stock Performance and Valuation - Dell's shares have gained 7.3% year to date, underperforming the broader Zacks Computer & Technology sector's return of 8.4% [9] - Dell is trading at a significant discount with a forward 12-month Price/Sales ratio of 12.36X compared to the sector's 27.64X, indicating a favorable valuation [13]

Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected performance exceeding the benchmark index by over 10% [1][36]. Core Insights - The communication industry has seen significant advancements with the release of Grok4 and Kimi K2, which are expected to enhance capabilities in various applications such as programming and robotics [3][15]. - The earnings forecasts for major players in the server, optical module, and copper connection sectors are promising, with notable year-on-year growth expected [5][16]. - The ongoing global competition in computing power is shifting from model training to service quality and competitive advantages, suggesting a robust outlook for investments in the sector [7][18]. Summary by Sections Industry Investment Rating - The communication industry is rated as "Outperform," with expectations of exceeding the benchmark index by over 10% [1][36]. Industry Trends - Grok4, launched by xAI, boasts a tenfold improvement in reasoning capabilities compared to its predecessor, with applications in complex task execution and programming [3][14]. - Kimi K2, a new MoE model, has achieved state-of-the-art results in several foundational tests, indicating significant advancements in AI capabilities [4][15]. Earnings Forecasts - Industrial Fulian anticipates a net profit of 11.96-12.16 billion yuan for the first half of 2025, reflecting a year-on-year increase of 36.8%-39.1% [5][16]. - Other companies like Guangxun Technology and Huagong Technology also project substantial profit growth, with increases ranging from 30% to 95% year-on-year [5][16]. Investment Recommendations - The report suggests focusing on both overseas and domestic computing power chains, highlighting companies such as Industrial Fulian and Huagong Technology as key players [8][19]. - The ongoing arms race in computing power is expected to yield numerous investment opportunities in the coming years, particularly in the context of domestic algorithm optimization [17][18]. Market Overview - The overall market showed positive performance during the week of July 7-11, 2025, with notable increases in various indices, including a 2.36% rise in the ChiNext Index [8][19]. - Specific sectors such as equipment manufacturers and IoT led the weekly gains, indicating strong investor interest [8][19].