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].

Core Insights - Super Micro Computer, Inc. (SMCI) is now shipping advanced 4-socket servers optimized for large-scale database and enterprise applications, utilizing the latest Intel Xeon 6 Processors with Performance-Cores [1][2] - These new servers are designed to support high-performance computing (HPC), mission-critical workloads, and in-memory databases, offering significantly higher performance compared to previous generations [1][6] - The servers can accommodate up to 16TB of memory and support up to 6 double-width GPUs, making them suitable for demanding enterprise needs [2][6] Product Features - The 4-socket servers are certified for SAP HANA and Oracle Linux, allowing for superior performance by scaling workloads within a single node [3] - The systems can host two double-width GPUs in a 2U configuration and up to 6 double-width GPUs in a 4U configuration, enhancing capabilities for AI training and enterprise database applications [3][4] - Performance increases of up to 50% compared to the previous generation of Intel processors are reported, with a total of up to 344 cores per system [6] Market Position - Supermicro is positioned as a global leader in Application-Optimized Total IT Solutions, committed to delivering first-to-market innovations across various sectors including Enterprise, Cloud, AI, and 5G [5] - The company emphasizes its ability to provide complete data center solutions worldwide, leveraging its DCBBS approach and production capabilities [2][5] - Supermicro's products are designed and manufactured in-house across multiple locations, optimizing for total cost of ownership (TCO) and reducing environmental impact [5]

Core Insights - Wall Street continues its upward trend, primarily driven by the technology sector's adoption of generative AI, despite some challenges in early 2025 [2] - Three technology companies have seen significant earnings estimate revisions, indicating positive market expectations [3] Company Summaries Dell Technologies Inc. (DELL) - DELL has experienced strong demand for AI servers, securing $12.1 billion in AI server orders, which has created a robust backlog [5][9] - The company is expanding its cloud services and AI infrastructure through its APEX platform, which offers multi-cloud solutions [7] - DELL's expected revenue and earnings growth rates for the current year are 8.7% and 16%, respectively, with a recent 0.1% improvement in earnings estimates [8] Jabil Inc. (JBL) - JBL benefits from momentum in capital equipment and AI-powered data center infrastructure, with an 8.4% increase in next-year EPS estimates [9][12] - The company maintains high free cash flow, indicating efficient financial management and operational efficiency [11] - Expected revenue and earnings growth rates for JBL are 5.8% and 17.8%, respectively, for the next fiscal year [12] Credo Technology Group Holding Ltd. (CRDO) - CRDO specializes in high-performance serial connectivity solutions, with its Active Electrical Cables (AEC) gaining traction in the data center market [14] - The company has seen a 37% increase in earnings estimates over the last 60 days, with expected revenue and earnings growth rates of 85.8% and over 100% for the current year [19] - CRDO's product lines, including PCIe retimers and Ethernet retimers, are experiencing robust demand, particularly in AI server applications [17][18]

Investment Rating - The investment rating for Foxconn Industrial Internet is "Buy" with a target price of Rmb26.00, indicating an expected return of 11.1% [3][20]. Core Insights - Foxconn Industrial Internet (FII) reported a net profit guidance for 2Q25 of Rmb6.73-6.93 billion, representing a year-over-year increase of 48%-52%, which exceeds CitiE and BBGe estimates by 12% and 26% respectively [1][2]. - Cloud computing revenue for FII increased by over 50% in 2Q25, with AI server revenue growing by over 60% year-over-year, although this was below the initial guidance of 100%+ [1][2]. - The revenue from CSP servers rose by more than 150% year-over-year in 2Q25, and significant growth was observed in GPU module and compute tray shipments [2]. Summary by Sections Financial Performance - FII's net profit guidance for 2Q25 is as follows: - High-end: Rmb6.93 billion, a 52% increase year-over-year - Medium: Rmb6.83 billion, a 50% increase year-over-year - Low-end: Rmb6.73 billion, a 48% increase year-over-year [4]. Valuation - The target price of Rmb26.00 is based on a valuation of 17.0x 2025E earnings, which is justified by an earnings upcycle expected in 2025-2026 [6]. - The valuation multiple aligns with a blended P/E approach, applying 15x P/E to the non-AI segment and 20x P/E to the AI segment [6]. Market Context - The market capitalization of FII is approximately Rmb476.23 billion (US$66.46 billion) [3]. - The expected dividend yield is 2.7%, contributing to the overall expected return of 11.1% [3].