Core Viewpoint - The article discusses the ongoing wealth creation myth surrounding AI in the A-share market, highlighting the significant rise in market capitalization of companies involved in AI infrastructure since the advent of ChatGPT [2]. Group 1: AI and Energy Supply - The logic of computing power extends to upstream energy supply, with power grid equipment becoming a core investment theme, resulting in numerous stocks doubling in value over the past year [3]. - Major tech companies, including Microsoft, Google, and Amazon, have committed to self-supplying or purchasing the electricity needed for AI data centers, indicating a shift in responsibility for energy supply [7]. - The competition for AI dominance is evolving into an energy race, which has activated the power grid equipment sector, supporting its recent price increases [10]. Group 2: Investment Trends - Domestic investments in power grids are projected to exceed 5 trillion yuan during the 14th Five-Year Plan, providing a solid demand foundation for high-voltage and smart grid sectors [12]. - In the U.S., power grid operators are pushing for a $75 billion transmission expansion plan, focusing on building high-voltage AC lines [12]. - The EU has announced a plan to invest 1.2 trillion euros by 2040 for comprehensive grid modernization [13]. Group 3: AI Model Performance and Cost Structure - China's AI model invocation surged by 127% in early 2026, surpassing the U.S. for the first time, with Chinese models capturing 85.7% of the global market [20]. - The cost structure of AI token production shows that electricity and hardware depreciation account for over 70% of the total cost, emphasizing the importance of energy supply in AI commercial viability [24]. - The price of tokens for Chinese AI models is significantly lower than that of U.S. models, providing a competitive advantage in the global market [28]. Group 4: Power Supply Challenges in the U.S. - The U.S. faces significant challenges in power supply, including long interconnection wait times averaging over 8 years and regulatory hurdles that delay new high-voltage transmission lines [30][31]. - The aging infrastructure and lengthy approval processes hinder the ability to meet the rapidly increasing demand for electricity from AI data centers [31]. - In contrast, China's power supply system is more stable and efficient, supporting the rapid deployment of AI computing power [33]. Group 5: Company Performance and Market Opportunities - Companies like Suyuan Electric have benefited from both domestic smart computing expansion and overseas demand for power equipment, with revenue reaching 21.205 billion yuan, a 37.18% increase [40]. - Jinpan Technology reported a net profit of 659 million yuan, driven by sales growth in the AI data center sector [41]. - The high-voltage equipment sector is expected to maintain high demand over the next 5-10 years, with companies possessing core technological advantages poised for growth [53].