Summary of Conference Call on Domestic Computing Power Industry Chain Investment Opportunities Industry Overview - The conference call discusses the domestic computing power chip sector, particularly focusing on companies like Cambricon and the impact of major internet firms such as ByteDance and Alibaba restarting capital expenditure tenders, indicating a positive shift in the COMPEX cycle [1][3][4]. Key Points and Arguments - **Investment Opportunities**: The investment opportunity window for domestic computing power chips began in early July 2025, marked by the H20 exemption allowing continued sales to China and subsequent capital expenditure tenders from major internet companies [3][4]. - **Market Recovery**: The domestic computing power chip sector is recovering from a low point in July 2025, with negative factors dissipating and manufacturing yield improving, leading to a turnaround in development [1][4][5]. - **Cambricon's Position**: Cambricon is deeply tied to ByteDance, with substantial orders expected. Despite supply constraints from TSMC and SMIC, the expansion of SMIC's n+2 capacity and yield improvements present significant growth potential for Cambricon [1][6]. - **Production Capacity**: SMIC's n+2 capacity expansion is exceeding expectations, which will significantly enhance Cambricon's production capacity, with projections of 400,000 units and revenues exceeding 25 billion yuan by 2026 [2][14]. - **Future Chip Development**: Cambricon's next-generation chip, the 690, is expected to achieve 80% of NVIDIA H100's performance, potentially surpassing the Ascend 910C, marking it as the strongest domestic chip [10][15]. Additional Important Insights - **Market Sentiment**: The semiconductor sector has been experiencing low sentiment, but recent developments indicate a potential turnaround, with Cambricon's stock showing resilience against negative factors [13][15]. - **Challenges and Responses**: Cambricon faces several challenges, including poor Q2 performance and supply shortages, but these issues are expected to be mitigated by SMIC's capacity expansion and yield recovery [12][13]. - **Long-term Outlook**: The long-term outlook for the domestic computing power chip industry is optimistic, with expectations of continued growth driven by advancements in manufacturing processes and increasing demand from internet giants [8][18]. Potential Companies to Watch - Key players in the domestic computing power industry include Cambricon and Haiguang, along with foundries and packaging companies like SMIC and Hua Hong, which are crucial for the advancement of the industry [18][19]. Conclusion - The domestic computing power chip sector is poised for significant growth, driven by favorable market conditions, technological advancements, and strong demand from major internet companies, making it a compelling area for investment opportunities [1][8][15].