Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage with a recommendation [3]. Core Insights - The company is positioned as a leading domestic high-performance general-purpose GPU manufacturer, focusing on a fully autonomous technology system across three product lines: training and inference, general computing, and graphics rendering [8][15]. - The GPU market in China is experiencing rapid growth, with the industry expected to reach 1.36 trillion yuan by 2029, driven by AI applications and government support for domestic computing power [8][47]. - The company has successfully commercialized its GPU products, achieving significant revenue growth and maintaining a high gross margin, indicating strong operational efficiency [8][30]. Summary by Sections 1. Company Overview - The company is a key player in the domestic high-performance GPU market, focusing on self-developed GPU chips and computing platforms [15]. - It has established a robust product ecosystem that supports various applications, including AI, finance, and healthcare [15][16]. 2. Market Dynamics - The GPU market is rapidly expanding, with a projected compound annual growth rate of over 40% in China from 2020 to 2029 [8][47]. - The company is well-positioned to benefit from the increasing demand for AI-driven applications and the shift towards domestic GPU solutions due to geopolitical factors [53][54]. 3. Financial Performance - The company forecasts significant revenue growth, with expected revenues of 1.67 billion yuan in 2025 and 5.84 billion yuan in 2027, reflecting a compound annual growth rate of over 70% [3][30]. - The gross margin has improved significantly, reaching 55.76% in the first three quarters of 2025, indicating effective cost management and product pricing strategies [35][30]. 4. Product Development and R&D - The company is committed to continuous R&D investment, with R&D expenses projected to increase from 648 million yuan in 2022 to 901 million yuan in 2024 [37][42]. - It is developing next-generation GPU products aimed at enhancing performance and expanding market applications, including AI inference and general-purpose computing [42][43]. 5. Strategic Partnerships and Customer Base - The company is actively engaging with key internet clients and telecom operators to expand its customer base and secure future orders [11][10]. - Collaborations with major tech firms are expected to enhance product validation and market penetration, with initial orders anticipated in 2025 [11][10].

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage with a recommendation [3]. Core Insights - The company is positioned as a leading domestic high-performance general-purpose GPU manufacturer, focusing on a fully autonomous technology system across three product lines: training and inference, general computing, and graphics rendering [8][15]. - The company has shown significant revenue growth, with projected revenues of 7.43 billion yuan in 2024, reflecting a compound annual growth rate of 4074.52% from 2022 [29][30]. - The domestic GPU market is experiencing rapid growth, with the market size expected to reach 1.36 trillion yuan by 2029, driven by AI applications and government support for domestic production [47][54]. Summary by Sections Section 1: Breaking Through "Bottlenecks" to Build a Leading Domestic GPU Company - The company is a key player in the domestic high-performance GPU market, focusing on self-developed GPU chips and computing platforms [15]. - The company has established a strong product system and software ecosystem, providing high-efficiency computing support for various industries [16]. - The company has successfully commercialized large-scale applications of its GPU products, achieving significant revenue growth [16][29]. Section 2: Accelerating Rise of Domestic GPUs and the Opening of the Computing Power Era - The GPU market in China has grown rapidly, with a projected market size increase from 0.04 trillion yuan in 2020 to 0.16 trillion yuan in 2024 [47]. - The domestic GPU industry is expected to capture a larger market share, increasing from 30.8% in 2024 to 37.8% by 2029 [47]. - The company is well-positioned to benefit from the increasing demand for AI technologies and the push for domestic alternatives [54]. Section 3: New Era of Domestic GPU Competition and the Company’s New General Computing Power Landscape - The company is advancing its GPU products, with the C series leading the charge in high-end GPU markets [8][15]. - The company has established a competitive advantage through its self-developed architecture and software stack, enabling large-scale deployment in AI training and inference [8][16]. - The company is expected to continue expanding its market share and revenue through strategic partnerships and product innovations [8][54]. Section 4: Profit Forecast and Investment Recommendations - The company is projected to achieve revenues of 16.65 billion yuan in 2025, 34.31 billion yuan in 2026, and 58.44 billion yuan in 2027, with corresponding price-to-sales ratios of 119, 58, and 34 [3][30]. - The company is in a strategic loss phase but is expected to turn profitable as sales scale increases and operational efficiencies improve [30]. - The report emphasizes the importance of continued R&D investment to maintain competitive advantages and drive future growth [42][43].

Core Viewpoint - The article highlights the upcoming IPO of Mu Xi Co., which is set to list on December 17, 2023, on the Shanghai Stock Exchange, marking a significant step in the domestic GPU market following the successful debut of Moore Threads [1]. Group 1: Company Overview - Mu Xi Co. focuses on high-performance general-purpose GPUs, differentiating itself from Moore Threads by targeting data center applications and vertical industry clients, while leveraging domestic supply chain advantages [5]. - The IPO price is set at 104.66 yuan per share, with 40.1 million shares issued, aiming to raise approximately 4.197 billion yuan for R&D and industrialization of new AI inference GPUs [5]. Group 2: Financial Performance - Mu Xi Co. is currently in a critical phase of R&D and market expansion, reporting net losses of 777 million yuan in 2022, 871 million yuan in 2023, and projected losses of 1.409 billion yuan in 2024, primarily due to investments in core technology [6]. - Revenue has seen exponential growth, increasing from 42.64 thousand yuan in 2022 to 743 million yuan in 2024, with a projected growth rate of 101.86% to 166.46% in 2025 [6]. Group 3: Product Development - The company has established a comprehensive product line covering AI computing, general computing, and graphics rendering, including the "Xi Si N series," "Xi Yun C series," and "Xi Cai G series" [7]. - The first AI inference chip, Xi Si N100, was launched in 2022, with subsequent models showing strong performance in cloud inference scenarios [7]. Group 4: Market Context - The global GPU market is dominated by foreign companies, and the domestic AI chip demand heavily relies on imports. The ban on high-end chips from NVIDIA has created significant opportunities for domestic manufacturers [9]. - The Chinese AI chip market is expected to reach 153 billion yuan by 2025, indicating a growing demand and favorable market conditions for domestic GPU companies [9].

Core Viewpoint - The article discusses the recent IPO filings of domestic GPU companies, Moer Thread and Muxi, highlighting the significant potential for domestic GPU manufacturers to replace foreign dominance in the market, especially in the context of geopolitical tensions and the AI revolution [1]. Company Overview - Moer Thread focuses on the research, design, and sales of GPUs and related products, aiming to provide computing acceleration platforms for high-performance computing fields such as AI and digital twins. The company has launched four generations of GPU architectures and has a diverse product matrix covering various application areas [2][3]. - Muxi is dedicated to the independent research and development of high-performance GPU chips and computing platforms, emphasizing technological innovation and a robust software ecosystem to support AI applications across multiple industries [8][32]. Financial Performance - Moer Thread's revenue has shown a growth trend, driven by a rich variety of products and deepened customer collaborations. However, the company has not yet achieved profitability, with significant operating losses reported [4][6][7]. - Muxi has experienced rapid revenue growth, with an average annual growth rate of 4074.52% over the past three years, although it has also not achieved profitability [10][12]. Employee Structure - As of the end of 2024, Moer Thread employs 1,126 people, with 78.69% in research and development roles, indicating a strong focus on innovation [2][3]. - Muxi has a similar emphasis on R&D, with 652 out of 870 employees dedicated to this area, representing 74.94% of its workforce [9]. Market Dynamics - The domestic GPU market has long been dominated by foreign giants, but there is a growing trend of domestic companies gaining market share through innovation and technology [1][7]. - Both companies face challenges in market penetration due to the high technical barriers and the need for ecosystem development, which requires time and investment [6][8]. Product Offerings - Moer Thread's product lines include AI computing products, professional graphics acceleration products, desktop graphics acceleration products, and intelligent SoC products, catering to various market needs [15][16]. - Muxi's product offerings focus on AI training and inference, general computing, and graphics rendering, with a strong emphasis on high-performance GPU solutions [8][32]. Technological Innovation - Moer Thread has developed the MUSA architecture, which integrates GPU hardware and software for high-performance computing, supporting various applications in AI, graphics processing, and scientific computing [20][21]. - Muxi has also made significant advancements in GPU technology, with a focus on creating a comprehensive ecosystem that supports AI applications across different sectors [32].