Investment Rating - The report maintains a "Recommended" investment rating for the computing chip industry, particularly focusing on domestic GPU manufacturers [2]. Core Insights - The report emphasizes that the development of large models follows the "Scaling Law," indicating a rigid expansion of computing power demand. This is supported by quantifiable data on AI application deployment and computing consumption, establishing a commercial link where "computing power is production material" [6]. - The GPU industry is characterized by a concentrated market structure, with major players like NVIDIA dominating the landscape. The report highlights the ongoing strategic partnerships between cloud giants and NVIDIA, reinforcing the latter's core position in AI infrastructure [6][7]. - The report analyzes the domestic GPU manufacturers' response to U.S. export restrictions, detailing their technological advancements and market strategies. Companies like Cambricon, Haiguang Information, Moore Threads, and Muxi are highlighted for their efforts to catch up with international standards [6][7]. Summary by Sections 1. GPU's Role in AI - GPUs excel in parallel computing, making them suitable for AI acceleration. The architecture of GPUs allows for simultaneous processing of vast amounts of data, significantly reducing training times for AI models [11][12]. - The GPU industry value chain is primarily concentrated in the midstream, where AI chip demand drives market growth. The report notes that the global GPU market is expected to reach 1,051.54 billion yuan by 2024, with a significant portion attributed to AI computing GPUs [24][29]. 2. Global AI Investment Trends - Major global tech companies are increasing their investments in AI, with NVIDIA maintaining a dominant position. The report cites that NVIDIA holds a 98% market share in the data center GPU segment, underscoring its competitive edge [21][35]. - The report indicates that the AI investment cycle is achieving a closed loop, with companies like Google and Microsoft ramping up their capital expenditures significantly to support AI infrastructure [46][50]. 3. Domestic GPU Development - The report discusses the urgency for domestic GPU manufacturers to achieve self-sufficiency in light of U.S. export controls. Companies are making strides in product development and market entry, with varying degrees of commercial success [6][7]. - The report highlights the financial trajectories of domestic firms, noting that Haiguang Information achieved profitability in 2021, while Cambricon is expected to reach profitability by Q4 2024 [6][7]. 4. Market Projections - The report forecasts that the global GPU market will grow to 3,611.97 billion yuan by 2029, with China's share increasing from 15.6% in 2024 to 37.8% by 2029. AI computing GPUs are projected to be the core growth driver [24][29]. - The report anticipates that the demand for data center GPUs will continue to surge, with a projected market size of 663.92 billion yuan by 2029, reflecting a compound annual growth rate of 70.1% [29][31].

Core Viewpoint - Muxi Integrated Circuit (Shanghai) Co., Ltd. has successfully passed the IPO application review by the Shanghai Stock Exchange's Sci-Tech Innovation Board, highlighting its role in achieving national computing power infrastructure autonomy [1] Group 1: Company Overview - Muxi was established in September 2020, focusing on the research and development of high-performance GPU chips and computing platforms, aiming to become a globally competitive GPU enterprise [2] - The founding team consists of three senior scientists from AMD, including Dr. Chen Weiliang, who has over 20 years of chip R&D experience, and has led the development of multiple high-performance GPU products [2] Group 2: Business Progress - Muxi's commercial progress is ahead of the industry, with its Xiyun C500 training integrated GPU expected to achieve formal mass production by February 2024, and cumulative sales exceeding 25,000 units by March 31, 2025 [3] - As of September 5, 2025, Muxi has an order backlog of 1.43 billion yuan, nearly double its expected revenue for the entire year of 2024 [3] Group 3: Product Development - Muxi's self-developed MetaXLink can achieve various interconnection topologies with 2-64 cards, demonstrating strong performance in linearity and stability for intelligent computing clusters [3] - The company is developing the Xiyun C600 GPU, which completed its initial testing in July 2023 and is expected to enter mass production by the end of 2025 [3] Group 4: Market Context - The semiconductor industry is receiving integrated support from policies, funding, and market initiatives, with Muxi's IPO aiming to raise 3.904 billion yuan for the development and industrialization of new high-performance GPUs and AI inference GPUs [1]

Core Insights - The Shanghai Stock Exchange will hold a listing review meeting for Muxi Integrated Circuit (Shanghai) Co., Ltd. on October 24, 2025, for its initial public offering [1] - Muxi Integrated Circuit was established in September 2020 and focuses on developing a full-stack GPU chip product line, including the Xisi N series for intelligent computing, the Xiyun C series for general computing, and the Xicai G series for graphics rendering [1] Product Development - The Xiyun C series is the company's flagship product aimed at intelligent computing and general computing, with the C500 model designed to compete with NVIDIA's A100 GPU [3] - The C600 model, based on advanced domestic processes, was initiated in February 2024 and is expected to enter risk production by the end of 2025 after successful functionality tests [3] - The next-generation flagship product, C700, was initiated in April 2025 and is currently in the design and development phase, with significant progress in core design and performance optimization [3] Financial Information - Muxi submitted its IPO application on June 30, 2023, aiming to issue up to 40.10 million A shares to raise approximately 3.904 billion yuan [5] - The funds will be allocated to three main projects: high-performance general GPU R&D, next-generation AI inference GPU R&D, and GPU technology R&D for emerging applications [5] - Financial results show revenues of 426,400 yuan in 2022, 53.02 million yuan in 2023, 740 million yuan in Q1 2024, and 320 million yuan in Q1 2025, with net losses of 780 million yuan, 870 million yuan, 1.4 billion yuan, and 230 million yuan respectively [5]

Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for investment opportunities [7]. Core Insights - The listing process for domestic GPU companies, represented by Muxi Co. and Moer Thread, is accelerating, marking a significant capital leap for the domestic GPU industry. This is expected to enhance the technological capabilities and competitiveness of domestic GPU products, narrowing the gap with international standards [2][3]. - Muxi Co. has a substantial order backlog of 1.43 billion yuan as of September 5, 2025, primarily from existing clients and new large orders, indicating strong demand for its products [3]. - Moer Thread's KUAE 2 product supports high-efficiency AI model training and is currently in the customer customization phase, showcasing the company's commitment to advancing its technology [4]. Summary by Sections Muxi Co. - Muxi Co. has successfully passed the second round of inquiries, with a significant reduction in the number of questions from 14 to 3, indicating a smoother path to listing [2]. - The company is actively expanding its client base among internet companies and operators, with expectations to secure its first order by the end of 2025 [3]. - The C600 chip has successfully completed initial testing and is expected to enter risk production by the end of 2025, complementing the existing C500 series [3]. Moer Thread - Moer Thread's KUAE 2 is designed for high-performance AI applications and is currently in the customization stage for clients, with plans for standardized sales in the future [4]. - The company emphasizes collaboration with domestic foundries to achieve products that meet international flagship standards, indicating a focus on quality and competitiveness [8]. Investment Recommendations - The report suggests that as Muxi Co. accelerates its IPO process, related companies in the supply chain are likely to benefit significantly. The trend of domestic computing power is expected to solidify, with specific companies recommended for attention, including Chipone Technology, SMIC, and Hua Hong Semiconductor [8].