Core Viewpoint - The report from Huafu Securities highlights that major North American cloud providers, including Google, Microsoft, Meta, and Amazon, have disclosed their Q2 financial results, showing significant year-on-year increases in capital expenditures, reinforcing the ongoing trend in the AI industry driven by rising inference demand [1][2][3]. Group 1: Q2 Capital Expenditures - Google reported Q2 capital expenditures of $22.4 billion, a year-on-year increase of 70% [2] - Microsoft reported $24.2 billion in capital expenditures, up 27% year-on-year [2] - Meta's capital expenditures reached $17 billion, reflecting a 101% increase year-on-year [2] - Amazon's capital expenditures were $32.2 billion, showing an 83% year-on-year growth [2] Group 2: Future Capital Expenditure Guidance - Google has raised its 2025 full-year capital expenditure forecast from $75 billion to $85 billion, citing strong demand for cloud products and services [2] - Microsoft expects its next quarter capital expenditures to exceed $30 billion, indicating a quarter-on-quarter growth of over 24% [2] - Meta adjusted its 2025 capital expenditure range from $64-72 billion to $66-72 billion, maintaining high growth expectations for 2026 [2] - Amazon indicated that its Q2 capital expenditures represent the level for the second half of the year [2] Group 3: AI Industry Trends - The competition and iteration in large models continue, with capital expenditures for computing power expected to remain high [3] - The demand for inference has significantly increased, with total computing power demand projected to grow further [4] - Data from Volcano Engine indicates that the daily token usage for the Doubao large model has surged to over 16.4 trillion, a 137-fold increase compared to last year [4] - Google's monthly token processing volume reached 980 trillion, doubling from April's figures, indicating strong growth momentum [4] Group 4: Investment Recommendations - The AI industry trend is expected to continue strengthening, with capital expenditures likely to rise [5] - PCB is identified as a crucial segment in the AI hardware supply chain, with high demand for NVIDIA GPUs and self-developed ASICs from cloud providers [5] - Companies to watch include Huadian Co., Shenghong Technology, Shennan Circuit, and others in the PCB and server manufacturing sectors [5]

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% over the next 6 months [14]. Core Insights - The report highlights a significant increase in capital expenditures among major North American cloud providers, with Q2 capital expenditures reported as follows: Google at $22.4 billion (+70% YoY), Microsoft at $24.2 billion (+27% YoY), Meta at $17 billion (+101% YoY), and Amazon at $32.2 billion (+83% YoY) [3]. - The upward revisions in capital expenditure forecasts for 2025 by these companies reflect strong demand for cloud products and services, with Google increasing its forecast from $75 billion to $85 billion, Microsoft expecting over $30 billion in the next quarter, Meta adjusting its range from $64-72 billion to $66-72 billion, and Amazon indicating that Q2 expenditures represent the level for the second half of the year [3]. - The report emphasizes the ongoing competition and iteration in AI models, suggesting that capital expenditures related to computing power will remain high, further reinforced by the strong Q2 earnings reports and future guidance [3]. Summary by Sections Industry Dynamics - The report notes a substantial increase in inference computing power consumption, which has seen a multiplicative growth this year, driven by the demand for training-related computing power. As of May 2025, the daily token usage for the Doubao large model exceeded 16.4 trillion, a 137-fold increase from the previous year [4]. - Google reported that the monthly token processing volume reached 980 trillion, doubling from April's figure, indicating significant growth in user engagement and demand for AI applications [4]. Investment Recommendations - The report suggests that the AI industry trend has been reinforced this year, driven by a substantial increase in inference demand, leading to sustained growth in AI capital expenditures. It highlights the importance of PCB in the AI hardware supply chain, with a recommendation to focus on companies such as Huadian Co., Shenghong Technology, Shennan Circuit, and others due to expected benefits from supply-demand dynamics [5]. - Additionally, it recommends monitoring server manufacturing firms like Industrial Fulian and liquid cooling supply chain companies such as Invec and Sihua New Materials [5].

Group 1 - The core viewpoint of the news highlights the significant growth in the AI sector, particularly driven by Google's Gemini app, which has surpassed 450 million monthly active users and experienced over 50% growth in daily request volume compared to Q1 [1] - The company has increased its capital expenditure for Q2 2025 by 70% year-on-year, with a focus on technology infrastructure, allocating two-thirds to server investments and one-third to data centers and network equipment to meet customer demand [1] - The company anticipates a tight supply-demand relationship in 2026 and has raised its 2025 capital expenditure forecast by 13% to $85 billion, up from the previous $75 billion, with further increases expected in 2026 [1] Group 2 - The ChiNext AI ETF (159388) has seen an opening rise of over 3% and can fluctuate by up to 20% in a single day, tracking the ChiNext AI Index and covering key sectors such as hardware, software, and computing power [1] - The ETF is heavily invested in leading companies in the optical module, communication equipment, and integrated circuit sectors, benefiting from the global demand for AI computing power and hardware upgrades [1] - Investors interested in the AI sector can consider the ChiNext AI ETF (159388) for a streamlined investment approach [1]