Core Viewpoint - Huawei is leading a new paradigm in AI infrastructure with its innovative supernode interconnection technology, emphasizing the importance of computing power in artificial intelligence development [2][3]. Group 1: Ascend Chip Development - Huawei has made significant progress in its Ascend chip series, with the upcoming Ascend 950 series expected to enhance AI computing capabilities [3][4]. - The Ascend 950 series includes two chips: Ascend 950PR and Ascend 950DT, which will improve training efficiency and inference throughput [5][6]. - The Ascend 950PR chip targets inference prefill and recommendation scenarios, while the Ascend 950DT focuses on inference decode and training, with significant improvements in memory bandwidth and capacity [6][7]. Group 2: Supernode Products - The Atlas 950 supernode, based on the Ascend 950DT chip, will support 8192 Ascend 950DT chips, significantly increasing computing power and interconnection bandwidth [9][10]. - The Atlas 960 supernode, set to launch in 2027, will further enhance performance with a maximum support of 15488 cards, doubling the capabilities of the Atlas 950 [11][12]. - The Atlas 950 SuperCluster will consist of 64 Atlas 950 supernodes, achieving a total computing power of 524 EFLOPS, making it the world's strongest computing cluster [21][22]. Group 3: Interconnection Technology - Huawei has developed a new interconnection protocol, "Lingqu," to support large-scale supernode architectures, enhancing reliability and bandwidth [20][23]. - The interconnection technology addresses challenges in long-distance, high-reliability connections and aims to achieve TB-level bandwidth with low latency [19][20]. - The Lingqu protocol will be open for industry partners to foster collaboration and innovation in interconnection technology [20][23].

Core Insights - Huawei unexpectedly revealed its future chip roadmap during the Huawei Connect 2025 event, showcasing several new chips including the Ascend 950, 960, and 970 series for AI computing, as well as the Kunpeng 950 and 960 processors for general computing [1][3][10] Group 1: Chip Developments - The Ascend 950 series chips will support low-precision data formats and achieve computing power of 1P and 2P, enhancing training efficiency and inference throughput [3][10] - The Ascend 960 is planned to double the performance of the Ascend 950 and will support Huawei's self-developed HiF4 data format, set to launch in Q4 2027 [7] - The Ascend 970 will further enhance specifications compared to the Ascend 960, with plans for release in Q4 2028 [7] Group 2: Supernode and Cluster Innovations - Huawei introduced the Atlas 950 supernode, which will consist of 8192 Ascend 950DT chips, achieving FP8 computing power of 8E FLOPS and FP4 computing power of 16E FLOPS, set to launch in Q4 2026 [11][13] - The Atlas 960 supernode, planned for Q4 2027, will be based on 15488 Ascend 960 chips, with FP8 computing power reaching 30E FLOPS and FP4 computing power reaching 60E FLOPS [13] - The Atlas 950 SuperCluster will consist of 64 Atlas 950 supernodes, achieving FP8 computing power of 524 EFLOPS, making it the world's strongest computing cluster [18] Group 3: Software and Ecosystem Development - Huawei aims to develop a robust software ecosystem to complement its hardware, with the CANN deep learning framework and MindSpore framework serving as alternatives to NVIDIA's CUDA [21][22] - The company plans to open-source its CANN compiler and virtual instruction set interface by the end of 2025, along with the Mind series application tools [22][24] - Huawei's strategy emphasizes hardware evolution through existing chip technology while fostering an open-source ecosystem to address challenges posed by U.S. sanctions [24]

Core Viewpoint - Huawei's rotating chairman Xu Zhijun announced that the Ascend chips will evolve at a pace of "almost doubling computing power every year" over the next three years [4][5]. Group 1: Ascend Chip Development - Huawei has planned three series of Ascend chips: Ascend 950, Ascend 960, and Ascend 970, with more specific chips in development [5][6]. - The Ascend 950 series includes Ascend 950PR and Ascend 950DT, featuring significant improvements such as support for low-precision formats, increased vector computing power, and a bandwidth of 2TB/s, which is 2.5 times that of the Ascend 910C [5][7]. - The Ascend 960 is expected to launch in Q4 2027, with specifications that double those of the Ascend 950, including support for a proprietary HiF4 data format [6][7]. - The Ascend 970 is still under discussion, with preliminary plans indicating a doubling of computing power and bandwidth compared to the Ascend 960 [7]. Group 2: Super Nodes and Clusters - Huawei will launch three super node products: Atlas 950, Atlas 960, and TaiShan 950, along with a new interconnect protocol called Lingqu [9][10]. - Xu emphasized that super nodes are becoming the dominant product form for AI infrastructure, functioning as a single logical computer composed of multiple physical machines [9]. - The Atlas 950 SuperCluster will be 2.5 times larger than the current largest cluster, xAI Colossus, and will have 1.3 times its computing power, making it the strongest computing cluster globally [10]. - By Q4 2027, Huawei plans to introduce the Atlas 960 SuperCluster, further increasing the scale to a million card level [10].

Market Overview - The three major indices experienced a rapid rise followed by a quick decline, with the Shanghai and Shenzhen markets recording a trading volume of 3.135 trillion, an increase of 758.4 billion compared to the previous trading day, marking the third highest volume of the year [1] - By the close, the Shanghai Composite Index fell by 1.15%, the Shenzhen Component Index by 1.06%, and the ChiNext Index by 1.64% [1] Semiconductor Sector - The semiconductor sector showed strength, with a notable rise in the Semiconductor Equipment ETF (159516) which increased by 4% after a brief pullback, and the Sci-Tech Chip ETF (589100) which rose by 2.28% [1] - Recent positive developments in the semiconductor sector include SMIC testing a 28nm deep ultraviolet lithography machine from a Shanghai startup, which could signal significant advancements in domestic semiconductor manufacturing [3] Huawei's AI and Chip Development - Huawei announced its AI computing power roadmap at the Huawei Connect Conference, projecting a doubling of computing power every year, with the Ascend 950PR chip expected to launch in Q1 2026 [2] - The company has deployed over 300 Atlas 900 supernodes, serving more than 20 clients, indicating strong demand for its AI infrastructure [2] Regulatory Environment - Nvidia is under investigation by China's market regulator for potential violations of antitrust laws, which has impacted its sales in China this year [3] - The semiconductor industry is expected to improve, paving the way for increased domestic production capabilities, particularly in light of challenges faced by foreign competitors like Nvidia [3] Investment Opportunities - Investors are encouraged to focus on both North American and domestic computing power to mitigate geopolitical risks, with various ETFs representing these sectors [4] - The Hong Kong stock market is expected to benefit from the US Federal Reserve's recent interest rate cuts, which historically correlate with positive performance in the technology sector [5][6] Technology Sector in Hong Kong - The Hong Kong technology sector, often referred to as the "Silicon Valley of the East," includes key Chinese tech assets and has shown significant growth potential [7] - The Hong Kong Technology ETF (513020) represents a balanced investment across various tech industries, including internet, new energy vehicles, chips, and biomedicine, indicating strong overall investment value [7]