Core Viewpoint - The computing power sector has experienced a significant surge, becoming one of the most attractive investment themes in the A-share market, particularly driven by AI chips, AI servers, optical modules, and liquid cooling technologies [1][4]. Group 1: Market Performance - The computing power sector saw multiple stocks with market capitalizations exceeding 100 billion reach new highs, including Cambricon, Industrial Fulian, and leading optical module companies like Zhongji Xuchuang and Xinyi Sheng [1]. - On August 13, the optical module index rose by 6.24%, while the copper industry index increased by 4.84%, indicating strong market interest in these sectors [2]. - Cambricon's stock price reached a peak of 868 CNY, closing at 860 CNY with a market cap of 359.8 billion CNY, reflecting investor enthusiasm despite rumors being denied [4]. Group 2: Key Drivers - Four main factors are driving the surge in the computing power sector: 1. Nvidia's potential easing of sales policies to China, which has injected confidence into the sector [7]. 2. Explosive growth in capital expenditures from North American cloud providers, with a total of 159.384 billion USD expected in the first half of 2025, a 24.4% year-on-year increase [8]. 3. The release of major AI models, such as OpenAI's GPT-5, which has significantly increased demand for computing power [8][9]. 4. Breakthroughs in the domestic computing power supply chain, with companies like Huawei and domestic liquid cooling firms achieving significant technological advancements [9]. Group 3: Sector Trends - The liquid cooling market is projected to exceed 200 billion CNY by 2025, with a current global market size surpassing 50 billion CNY, and China accounting for 35% of this market [6]. - The shift from air cooling to liquid cooling systems is becoming increasingly clear, driven by the need for efficient cooling solutions for high-power chips [6]. - Analysts predict substantial growth in earnings for several companies in the computing power hardware sector, with projected profit increases of up to 1479% for Huafeng Technology and 897% for Hailanxin [9].

Core Viewpoint - The computing power sector has experienced a significant surge, driven by factors such as relaxed sales policies from Nvidia, increased capital expenditures from North American cloud providers, and a growing demand for AI models, making it a prominent investment theme in the A-share market [1][5][6]. Group 1: Market Performance - The computing power sector saw a notable rise on August 13, 2025, with key stocks like Cambricon, Industrial Fulian, and leading optical module companies reaching new highs [1]. - Cambricon's stock peaked at 868 CNY, closing at 860 CNY, with a market capitalization of 359.8 billion CNY [1]. - Industrial Fulian's stock hit a record high of 43.68 CNY, with a single-day trading volume exceeding 10 billion CNY, reflecting strong market interest in AI server leaders [1]. Group 2: Subsector Highlights - The optical module sector also performed well, with stocks like NewEase and Zhongji Xuchuang rising significantly, with NewEase increasing by 15.55% to 236.56 CNY and Zhongji Xuchuang by 11.66% to 252 CNY [2]. - The computing power leasing concept gained traction, with stocks like Hangang Co. hitting the daily limit and other related stocks also seeing substantial gains [2]. - Liquid cooling technology, essential for computing infrastructure, attracted significant investment, with multiple stocks rising over 12% [2]. Group 3: Driving Factors - Nvidia's potential easing of sales policies to China has provided a boost to the computing power sector [5]. - North American cloud providers have reported a substantial increase in capital expenditures, with a total of 159.38 billion USD expected in the first half of 2025, marking a 24.4% year-on-year increase [5]. - The release of major AI models, including OpenAI's GPT-5, has intensified the demand for computing power, prompting companies to secure resources to remain competitive [6]. - Domestic advancements in the computing power supply chain, such as Huawei's upcoming AISSD technology, have also contributed to the sector's growth [6]. Group 4: Future Outlook - Analysts are optimistic about the performance of leading companies in the sector, with significant profit growth expected for several firms, including Huafeng Technology with a projected net profit increase of 1479% [7].

Market Overview - The A-share market opened lower with the Shanghai Composite Index down by 0.1% and the ChiNext Index down by 0.07% [1] - The photovoltaic equipment sector showed active performance, while insurance, rare earth permanent magnets, and computing power leasing sectors experienced the largest declines [1] Institutional Insights - According to Caixin Securities, the market is in a new buying window before August, with no significant macro risks, improved investor sentiment, and incoming capital, suggesting continued upward momentum despite strong resistance levels [1] - Investment recommendations include sectors related to "anti-involution" policies such as photovoltaic, lithium batteries, automobiles, steel, building materials, coal, and pork [1] - Dongfang Securities predicts that the Shanghai Composite Index will oscillate around 3500 points, with a low systemic risk and potential for upward expansion [2] - CITIC Securities maintains a strategic optimistic outlook, noting that liquidity and improved market sentiment could lead to further upward movement in A-shares, despite potential short-term pullback pressures [3] Sector Focus - High-prospect sectors to consider include TMT (Technology, Media, and Telecommunications) and high-end manufacturing, particularly those expected to report better-than-expected mid-year results [2] - The report emphasizes the importance of sectors benefiting from "anti-involution" policies and those with anticipated strong mid-year earnings, such as overseas computing power, wind energy, shipping, innovative pharmaceuticals, new consumption, and military industry [1][3]