Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Asian Technology** sector, specifically the **datacenter power**, **liquid cooling**, and **ODM rack build** related to AI server technology [1][4]. Core Insights and Arguments - **AI Server Demand and Shipments**: - Forecast for 2025 indicates approximately **38,000 NVL72 racks** in demand, with **10,000-11,000** in order backlog. For 2026, demand is expected to rise to **50,000-60,000 NVL72 racks** [4][10]. - The anticipated **double YoY growth** in shipments suggests strong revenue potential for AI server ODMs and component vendors [4]. - **GB300/VR200 Server Updates**: - The ramp-up for **GB300 servers** is slower than expected, with a more significant increase anticipated in **1Q26**. The **VR200 modules** are expected to ramp in **2Q26**, with delays likely due to ongoing discussions on specifications [4]. - Key specification changes for the VR200 include increased power consumption and enhanced cooling solutions, which will impact the overall design and manufacturing landscape [4]. - **Power Supply Unit (PSU) Market Growth**: - The global datacenter power installed base is projected to grow from **117 GW in 2025 to 242 GW in 2028**, representing a **27% CAGR** [5]. - The server PSU total addressable market (TAM) is expected to grow at a **64% CAGR** during the same period, benefiting companies like **Delta Electronics** [5]. - **Liquid Cooling Market Expansion**: - The sidecar/CDU TAM is projected to grow from **$6 billion in 2025 to $21 billion by 2028**, indicating a **54% CAGR** driven by increased AI server power consumption [5]. - Companies like **Delta** are positioned to benefit from this trend, with expected revenue growth of **36% CAGR** in liquid cooling systems from 2025 to 2027 [5]. - **Competitive Landscape**: - The potential shift towards standardized compute trays by Nvidia could lead to a more concentrated competitive landscape among NVL72 L10 server ODMs [4]. - Rising competition in the MCP market is anticipated as Nvidia may adopt a "consign" model, limiting customization and increasing competition among suppliers [5]. Additional Important Insights - **Stock Implications**: - J.P. Morgan has an **Overweight (OW)** rating on companies like **Wiwynn**, **Hon Hai**, and **Quanta** in the Taiwan ODM space, as well as **Delta** and **Chroma** in the datacenter power sector [6]. - In the liquid cooling space, **Jentech** and **Fositek** are identified as major beneficiaries from content growth [6]. - **Technological Advancements**: - The report highlights the importance of adopting advanced cooling solutions and power supply architectures to enhance efficiency and reduce power conversion losses in future AI datacenters [5]. - **Market Dynamics**: - The report indicates a potential market share shift from traditional server brands to server ODMs, reflecting changing dynamics in the datacenter hardware landscape [4]. This summary encapsulates the critical insights and projections regarding the datacenter power and liquid cooling industry, emphasizing the growth potential driven by AI server demand and technological advancements.