Core Viewpoint - The current equity market shows significant industrial trends in AI and innovative pharmaceuticals, with AI expected to drive a sustained industrial revolution over the next 5 to 10 years [1] Group 1: AI Market Insights - AI is anticipated to become a major industry revolution, with a focus on the value chain in computing power, including components like optical modules, PCBs, power supplies, and liquid cooling [1] - The liquid cooling segment for AI is projected to be a strategic area of interest over the next year, with expectations of a substantial market space growth [1] Group 2: Market Penetration and Trends - The penetration rate of liquid cooling in AI servers is expected to increase significantly, moving from a low penetration rate to a much higher one, particularly in 72-card cabinet servers compared to 8-card AI servers which primarily use air cooling [1]

Investment Rating - The industry investment rating is Neutral [8] Core Insights - AI liquid cooling is transitioning from an optional to a necessary solution, with demand expected to drive rapid growth in market space and penetration rates [8] - The acceleration of ASIC layouts and the increase in domestic computing cluster scale will open new growth opportunities for the liquid cooling market [8] - The overseas supply gap in liquid cooling will provide opportunities for domestic suppliers to expand internationally, with expectations of moving from component supply to modular and integrated solutions [8] - The AI liquid cooling sector has high barriers to entry and significant value, suggesting a favorable competitive landscape and profitability in the medium to long term [8] Summary by Sections Liquid Cooling Market Dynamics - The demand for AI computing centers is driving the need for high-density GPU clusters, leading to a shift towards liquid cooling solutions [8] - Major cloud service providers are accelerating the development of customized ASICs and integrating liquid cooling solutions [8] Investment Recommendations - Suggested companies to watch include: - Yinvik (002837, Not Rated) - Yinlun (002126, Buy) - Feilong (002536, Not Rated) - Chuanhuan Technology (300547, Not Rated) - Xiangxin Technology (002965, Not Rated) - Sulian Technology (301397, Not Rated) - Zhongding (000887, Not Rated) [3]