Investment Rating - The report maintains an "Overweight" rating for the electronic industry [1] Core Insights - In the AI chip Scale-up sector, NVIDIA is currently the dominant player, utilizing its proprietary NVLink technology to interconnect up to 576 GPUs with a communication speed of 1.8TB/s, significantly outperforming competitors using PCIe protocols [11][12] - The establishment of the UALink alliance by major companies like AMD, AWS, Google, and Cisco aims to create an open ecosystem, although challenging NVIDIA's NVLink remains difficult [11][12] - The report emphasizes the importance of high-speed SerDes technology, which is crucial for AI chip interconnectivity, and highlights the need for domestic development in this area to achieve self-sufficiency [45][46] Summary by Sections 1. Scale-up Overview - The report discusses the two main camps in AI chip interconnect technology: proprietary protocols and open ecosystems, with NVIDIA's NVLink being the most mature and effective solution [11][12] 2. NVLink and NVSwitch - NVLink is described as a layered protocol design that enhances data transmission reliability, while NVSwitch acts as a high-capacity switch facilitating efficient GPU communication [14][15] 3. NVIDIA's Interconnect Strategy - NVIDIA employs both NVLink for GPU-to-GPU connections and PCIe for GPU-to-CPU connections, with future developments potentially allowing direct NVLink connections to CPUs [21][30] 4. Domestic Alternatives for AI Chip Scale-up - The report suggests that achieving a domestic alternative to NVLink is challenging, but the UALink initiative may provide new opportunities for local AI chip development [45][46] 5. Investment Recommendations - The report recommends focusing on companies like 盛科通信 (Shengke Communication) and 海光信息 (Haiguang Information), while also monitoring 万通发展 (Wantong Development) and 澜起科技 (Lankai Technology) for potential investment opportunities [6]