Investment Rating - The report maintains a "Recommended" rating for Invec, Gaolan Co., and a "Cautious Recommendation" for Kexin New Source [4]. Core Insights - Microsoft's breakthrough in liquid cooling technology, specifically in-chip microfluidic cooling, significantly enhances heat removal efficiency by 2-3 times compared to traditional methods, allowing for stable high-frequency operation of chips and reducing peak temperature by 65% [2][3]. - The introduction of this technology is expected to reshape the IDC liquid cooling landscape, potentially leading to a "second impact" on the industry as more chip servers may come with built-in liquid cooling systems [2]. - The global electricity demand for data centers is projected to double from approximately 460 TWh in 2024 to over 1000 TWh by 2030, indicating a substantial increase in infrastructure energy consumption [3]. Summary by Sections Liquid Cooling Technology - Microsoft's new liquid cooling method utilizes microfluidic technology, which involves etching micron-level channels on the back of chips to directly cool heat sources, improving operational efficiency and sustainability [2]. - The potential for a 20%-30% improvement in Power Usage Effectiveness (PUE) could lead to significant reductions in data center operational costs [2]. Market Opportunities - The report highlights the growing need for advanced cooling solutions as AI development continues to drive demand for higher computing power, positioning liquid cooling as a critical technology to address power constraints [3]. - Companies to watch include Invec, Gaolan Co., and Kexin New Source, which are expected to benefit from these advancements in cooling technology [3]. Financial Projections - The report provides earnings per share (EPS) forecasts for key companies, with Invec projected to have an EPS of 0.61 in 2024, while Gaolan Co. is expected to recover from a loss to an EPS of 0.09 in 2025 [4].

Group 1 - Microsoft's new microfluidic liquid cooling technology is a significant topic of discussion in the market, showcasing an aggressive approach to cooling solutions at the wafer level rather than just packaging [1][3] - Alibaba announced an increase in capital expenditure to 380 billion, indicating a strong trend towards investment in AI chips, particularly in light of Nvidia's 1 trillion impact [9][10] - The collaboration between Alibaba and Haiguang to establish a joint venture for a large-scale cluster with 110,000 computing chips marks a shift from business collaboration to capital binding [11] Group 2 - The penetration rate of AI chatbots is rapidly increasing, with global investments in AI reaching 400 billion in the past year and expected to exceed 4 trillion over the next five years, indicating strong capital inflow into the industry [12] - Haiguang's latest BW 1000 GPU achieves significant performance metrics, with FP64 performance at 30 TFLOPS and FP32 at 60 TFLOPS, positioning it competitively against Nvidia's H100 [13] - Haiguang's HSL technology aims to enhance ecosystem compatibility and improve CPU-GPU connection efficiency, potentially facilitating entry into the internet sector and establishing influence [14][15]