Investment Rating - The report maintains a "Recommended" rating for the industry [4] Core Insights - The report highlights the significant impact of U.S. tariffs and export controls on Chinese products, particularly in the software and hardware sectors, emphasizing the need for domestic innovation and self-reliance [1] - The Chinese government is actively promoting domestic products through favorable procurement policies, including a 20% price deduction for local products in competitive bidding [1] - The report indicates that the domestic chip industry is gaining traction, particularly in the financial sector, with major projects like the Industrial and Commercial Bank of China's procurement of Huaguang chip servers valued at approximately 3 billion yuan [1] - The report notes a substantial increase in domestic server procurement by China Unicom, with 90.1% of the servers being domestically produced, reflecting a strong trend towards localization [2] - The report anticipates a turning point for the domestic innovation industry (Xinchang) driven by supportive policies and improving performance of listed companies in the sector [2][3] Summary by Sections - **Policy Support**: The government emphasizes high-level technological self-reliance as a key development focus, aiming to enhance core technology research and innovation capabilities [2] - **Market Performance**: Several listed companies in the Xinchang sector have shown improved performance compared to the previous year, indicating a positive outlook for the industry [3] - **Investment Recommendations**: The report suggests focusing on key players in the Xinchang sector, including China Software, Dameng Data, and others, as well as leaders in specific sub-sectors like industrial software and the Harmony OS ecosystem [3]

Core Insights - Chinese computing power companies received significant contracts from China Unicom and Industrial and Commercial Bank of China (ICBC), totaling over 10 billion RMB, primarily for domestic chip-based servers [2][6] - The rapid growth of domestic chip manufacturers is attributed to technological advancements and favorable policies [2][11] Group 1: Contract Details - ICBC awarded a 30 billion RMB server project to Inspur Information, with stringent bidding conditions requiring bidders to have prior contracts with major banks or telecom companies [4][5] - China Unicom's centralized procurement project for general servers totaled 79.6 billion RMB, with significant portions allocated to domestic computing power server providers [5][6] - The total procurement amount from both ICBC and China Unicom approaches 110 billion RMB, with around 100 billion RMB going to domestic server suppliers [6] Group 2: Market Position and Trends - Inspur Information is currently the leading domestic server provider, holding a 30.8% market share in the x86 server market [8][9] - The x86 server market in China is projected to reach 39.3 billion USD in 2024, with major players including Inspur Information, Super Fusion, and H3C [9][10] - Domestic chip companies like Haiguang and Huawei are emerging as key players, with Haiguang's products compatible with x86 instruction sets [11][12] Group 3: Industry Growth and Future Outlook - The demand for domestic chips is increasing, particularly in the financial and internet sectors, with significant revenue growth observed in these areas [13][14] - The shift towards AI and the need for advanced computing power are driving the development of local AI computing companies [14][15] - The resilience of domestic chip manufacturers in overcoming high-end manufacturing and design tool limitations positions them for future growth [15]

Core Insights - Chinese computing power companies received significant contracts during the National Day holiday, with China Unicom and Industrial and Commercial Bank of China (ICBC) announcing server procurement projects totaling over 10 billion RMB [1][5] - The projects primarily feature domestic chips, highlighting the rapid growth and market establishment of local chip manufacturers [1][8] Group 1: ICBC Server Procurement - Inspur Information won a 3 billion RMB server procurement project from ICBC, which set stringent conditions for bidders, including prior contracts with major banks and telecom companies [2][4] - The project involves air-cooled servers, despite a market shift towards liquid cooling, indicating a continued demand for traditional cooling methods [2][4] - The scale of this hardware tender is notable, as typically multiple companies would win such contracts, but this time only Inspur was selected as the primary bidder [2][5] Group 2: China Unicom Server Procurement - China Unicom's centralized procurement project for general servers totaled 7.96 billion RMB, with 11 manufacturers sharing the contracts [4][5] - The procurement was divided into two packages: one for Intel CPU servers and another for domestic computing servers, with significant portions allocated to domestic brands like Haiguang and Kunpeng [4][5] - Domestic server providers secured the majority of the contracts, reflecting a strong preference for local technology [5] Group 3: Market Position and Growth - Inspur Information is currently the leading domestic server provider, holding a 30.8% market share in the x86 server market, followed by other companies like Super Fusion and H3C [7][6] - The x86 server market in China is projected to reach 39.3 billion USD in 2024, indicating robust growth potential for domestic manufacturers [7] - Local chip companies, such as Haiguang and Huawei, have emerged as key players, with Haiguang's products compatible with mainstream operating systems and instruction sets [8][9] Group 4: Industry Trends and Future Outlook - The increasing adoption of domestic chips is supported by favorable policies and technological advancements, with significant growth observed in sectors like finance and internet [10][9] - The market share of domestic chips is growing, with Haiguang holding approximately 30% and Huawei's Kunpeng dominating around 70% [10] - The shift towards AI and the need for enhanced computing power are driving the development of local AI computing companies, creating new opportunities in the market [10]

Core Insights - Chinese computing power companies received significant contracts during the National Day holiday, with China Unicom and Industrial and Commercial Bank of China (ICBC) announcing server procurement projects totaling over 10 billion RMB [1][5] - The projects primarily feature domestic chips, highlighting the rapid growth and market acceptance of local chip manufacturers [1][9] Group 1: ICBC Server Procurement - ICBC awarded a 3 billion RMB server project to Inspur Information, which was the sole winner of the bid [3] - The bidding conditions were stringent, requiring bidders to have prior contracts with major banks or telecom companies totaling at least 20 million RMB [3] - The project involves air-cooled servers, despite a market shift towards liquid cooling solutions [3][5] Group 2: China Unicom Server Procurement - China Unicom's centralized procurement project totaled 7.96 billion RMB, divided into two packages: one for Intel CPU servers and another for domestic computing servers [4][5] - The domestic computing server package included budgets of 2.782 billion RMB for Haiguang servers and 4.285 billion RMB for Kunpeng servers [4] - Domestic suppliers secured the majority of the contracts, indicating a strong preference for local technology [5] Group 3: Market Dynamics and Trends - Inspur Information leads the domestic server market with a 30.8% share, followed by other local companies like Super Fusion and H3C [7] - The x86 server market in China is projected to reach 39.3 billion USD in 2024, with local companies increasingly relying on both Intel and Haiguang chips [7][8] - The rise of domestic chip manufacturers like Haiguang and Huawei is reshaping the competitive landscape, with local chips gaining market share against established players like Intel and AMD [9][10]

Investment Rating - The report does not explicitly provide an investment rating for the industry [31]. Core Insights - The North Exchange A-share trading volume reached 25.93 billion yuan on September 19, a decrease of 5.94 billion yuan from the previous trading day, with the North Exchange 50 Index closing at 1578.00, down 0.83% [9][16]. - Among the 276 companies listed on the North Exchange, 64 saw an increase in stock prices, 7 remained flat, and 205 experienced declines. The top five gainers included Shichang Co. (271.6%), Hanwei Technology (11.8%), and Wuxin Tunnel Equipment (11.6%) [17][19]. - The report highlights a divergence in the technology manufacturing sector, with hard technology themes like lithography machines and storage chips maintaining interest, while previously leading concepts like robotics faced significant corrections [3][20]. Summary by Sections Market Review - On September 19, the North Exchange A-share trading volume was 25.93 billion yuan, down from the previous day, with the North Exchange 50 Index closing at 1578.00, reflecting a PE_TTM of 74.00 times [9][16]. - The North Exchange Specialized and New Index closed at 2748.53, down 0.91% [9]. Stock Performance - Out of 276 companies, 64 increased, 7 remained unchanged, and 205 decreased in stock price. The top gainers were Shichang Co. (271.6%), Hanwei Technology (11.8%), and Wuxin Tunnel Equipment (11.6%) [17][19]. - The top decliners included Sanwei Co. (-26.2%), Dezong Automotive (-12.6%), and Hongxi Technology (-8.0%) [17][19]. Important News - Huawei announced new developments in its Ascend AI and Kunpeng chip roadmap, with multiple listed companies participating in the ecosystem [20]. - Shanghai optimized its property tax policy to lower holding costs and stimulate consumption potential, including tax exemptions for first-time homebuyers [21]. Company Announcements - Haomiao Technology received a patent for a simulation explosion rescue training system, enhancing its innovation capabilities [22]. - Fangzheng Valve announced a cash dividend plan for its shareholders [23]. - Greenheng Technology plans to use idle fundraising for low-risk financial products [24].

Core Viewpoint - The competition between Huawei and Nvidia has become a focal point in the tech industry, with Huawei demonstrating resilience and innovation despite U.S. sanctions, leading to a strong comeback in the AI chip sector [1][5][10] Group 1: Huawei's Resurgence - Huawei announced the release of several new chips, including Ascend 950PR, Ascend 950DT, Ascend 960, and Ascend 970, showcasing its ability to create a powerful computing platform despite U.S. restrictions [3] - The company has developed a "ten-thousand card-level super node" system that connects multiple chips to enhance computing power, allowing it to maintain a competitive position in the global AI computing market [3] - Huawei is also set to launch the Kunpeng 950 and Kunpeng 960 series chips to strengthen its competitiveness in general computing [3] Group 2: Nvidia's Challenges - Nvidia faces declining demand for its RTX6000D chip, which was specifically designed for the Chinese market, as major clients like Alibaba, Tencent, and ByteDance have rejected orders due to its inferior performance compared to other models [4] - The attempt to balance U.S. export controls with Chinese market needs has not succeeded, as Huawei's resurgence has reduced China's reliance on Nvidia, prompting a shift towards cost-effectiveness and technological innovation [4] Group 3: U.S.-China Tech Competition - U.S. sanctions against Huawei highlight the perceived threat of Huawei's technological advancements to U.S. dominance in the chip and AI sectors, indicating a fear of Huawei's rising capabilities [5][8] - Huawei's commitment to independent innovation and strong R&D efforts, supported by favorable government policies, has accelerated its chip development process [6][8] - The ongoing tech competition between the U.S. and China has reached a critical stage, with both countries vying for leadership in key areas like AI and chips, making technological innovation essential for future success [8][10]

Investment Rating - The industry investment rating is "Outperform the Market - A" and the rating is maintained [5]. Core Insights - The report highlights that Huawei's Ascend and Kunpeng chip roadmaps were announced at the Huawei Connect 2025 event, showcasing advancements in AI computing capabilities and the introduction of new supernodes [1][2][10]. - Domestic cloud service providers (CSPs) are increasingly adapting to domestic chips, which is expected to boost terminal demand, particularly with the upcoming Alibaba Cloud Summit [3][12]. - The report suggests that the domestic computing power industry is experiencing changes on both the supply and demand sides, with continuous iterations of domestic chips and increasing capital expenditures from major internet companies [3][12]. Summary by Sections Industry Overview - Huawei announced the Ascend 950 chip architecture, which supports low-precision data formats, enhances vector computing power, and increases interconnect bandwidth by 2.5 times [1][10]. - The new supernodes, Atlas950 SuperPoD and Atlas960 SuperPoD, support 8192 and 15488 Ascend cards respectively, leading in key metrics such as card scale and total computing power [2][11]. Market Performance - The report notes that the computer industry index rose by 0.16% this week, outperforming the Shanghai Composite Index by 1.46 percentage points [13][14]. - The overall performance of the computer sector was described as average, with market focus primarily on the domestic computing power industry chain [18]. Key Developments - Tencent Cloud has fully adapted to mainstream domestic chips and is actively participating in the open-source community, enhancing its software capabilities for AI computing [3][12]. - The upcoming Alibaba Cloud Summit is expected to feature over 110 specialized discussions on AGI, which may further stimulate demand for domestic computing power [3][12].

Investment Rating - Industry investment rating: Positive (maintained) [1] Core Insights - Huawei's Ascend roadmap was released, projecting a tenfold increase in computing power over the next decade, with AI storage capacity expected to grow 500 times by 2035, accounting for over 70% of total storage needs [14][15] - Microsoft announced the construction of the world's most powerful AI data center, Fairwater, with an initial investment of $3.3 billion, expected to be operational by early 2026, which will significantly boost demand for optical modules and switches [5][16] - The report emphasizes the importance of the Huawei AI chain, OCS, and domestic computing sectors, recommending various stocks across these segments [6][11] Summary by Sections 1. Investment Outlook - Huawei's new Ascend chip series will be launched in phases from 2026 to 2028, with significant improvements in bandwidth and computing power [11][12] - The report suggests focusing on seven key investment areas, including network equipment, AIDC construction, IT equipment, computing leasing, cloud computing platforms, AI applications, and satellite internet & 6G [17][18] 2. Communication Data Tracking - As of July 2025, China had 4.598 million 5G base stations, with 1.137 billion 5G mobile users, reflecting a year-on-year growth of 19.68% [25][27] - The report notes a decline in 5G smartphone shipments in June 2025, with a total of 18.436 million units shipped, a year-on-year decrease of 16.7% [25][32] 3. Operator Performance - In the first half of 2025, China Mobile's cloud revenue reached 56.1 billion yuan, a year-on-year increase of 11.3%, while China Telecom's cloud revenue was 57.3 billion yuan, up 3.8% [40][41] - The ARPU values for the three major operators remained stable, with slight decreases noted for China Mobile and China Unicom [40][44]

Group 1 - Huawei unveiled its AI computing capabilities at the Huawei Connect Conference, showcasing a comprehensive AI computing architecture that includes new Ascend chips, supernodes, and a new interconnect architecture called Lingqu [1][2] - The company emphasized that computing power is crucial for artificial intelligence and is a key component for China's AI development, aiming to create a "supernode + cluster" computing solution to meet the growing demand for computing power [1][3] - The Ascend chip series will see rapid iterations, with the Ascend 950 series set to launch in Q1 2026, followed by the Ascend 960 in 2027 and the Ascend 970 in 2028, with a goal of doubling computing power annually [2][3] Group 2 - Huawei's Kunpeng ecosystem is rapidly evolving, with the Kunpeng 950 expected to launch in Q4 2026 and the Kunpeng 960 in Q1 2028, positioning itself against Intel and AMD [3][4] - The company has developed a complete AI hardware and software system, moving beyond single-card solutions to clusters and supernodes, which are essential for AI infrastructure [4][5] - Huawei introduced the Atlas 950 SuperPoD and Atlas 960 SuperPoD supernodes, which support 8192 and 15488 Ascend cards respectively, claiming to be the world's strongest computing supernodes [5][6] Group 3 - Huawei has launched the world's first general-purpose computing supernode, TaiShan 950 SuperPoD, which aims to replace various large and small machines, showcasing its innovation in interconnect technology with the Lingqu protocol [6][7] - The company is focusing on creating a sustainable computing industry based on available chip manufacturing processes, emphasizing the need for system-level computing rather than just single-processor solutions [7][8] - Huawei's approach to AI computing is characterized by systematic innovation and a focus on building a robust computing ecosystem, aiming to provide new computing options globally [3][6]

Group 1: Federal Reserve and Market Reactions - The Federal Reserve lowered the federal funds rate target range by 25 basis points to 4.00%-4.25%, marking the first rate cut since December 2024 [2] - The market response was mixed, with U.S. stocks closing unevenly, gold prices fluctuating, and the dollar index experiencing volatility [2] - Analysts suggest that while the Fed has restarted rate cuts, it has not entered a rapid reduction phase, leaving future rate cut paths uncertain [2] Group 2: Currency and Investment Trends - The offshore RMB strengthened past 7.1, reaching an 11-month high, indicating a potential long-term appreciation cycle for RMB assets [2] - Southbound capital inflows into Hong Kong stocks exceeded 110 billion HKD, with internet leading companies attracting significant investment [2] - The Hang Seng Tech Index broke through the previous resistance level, reaching a four-year high of 6300 points [2] Group 3: Stock Market Dynamics - A-shares experienced a significant pullback after an initial surge, with the Shanghai Composite Index dropping 1.15% [2] - Over 4,300 stocks retreated, and trading volume exceeded 3.16 trillion yuan, indicating profit-taking behavior among investors [2] - The market is showing a strong sentiment for consecutive gains, but the weakening of heavyweight stocks is hindering index growth [2] Group 4: Corporate Developments - NVIDIA announced a $5 billion investment in Intel to jointly develop PC and data center chips, causing Intel's stock to surge over 30% [3] - This partnership may pose a threat to competitors like TSMC and AMD, potentially reshaping the semiconductor industry landscape [3] - Ten companies have pre-released their Q3 earnings forecasts, with eight expecting profit increases, signaling positive industry trends [4][5] Group 5: Cryptocurrency and Regulatory Changes - The U.S. approved its first Dogecoin ETF, marking a significant milestone for cryptocurrency ETFs [5] - Analysts predict that many of the 90 to 100 pending cryptocurrency ETF applications will likely be approved, despite concerns over the fundamental value of meme coins [5] Group 6: Corporate Restructuring and Strategy - *ST Nan Zhi announced plans to sell nearly 200 billion yuan in assets for just 1 yuan to shift towards a lighter asset model amid financial struggles [5] - Huawei unveiled its chip roadmap, aiming to enhance domestic computing power competitiveness with new product launches planned over the next three years [5]