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].

Core Viewpoint - Huawei has announced the launch of new AI chip technologies, aiming to challenge Nvidia's dominance in the market, with plans to release multiple Ascend series chips by 2028 [1][2][4]. Group 1: Product Launch and Features - Huawei's Vice Chairman Xu Zhijun revealed the upcoming Ascend 950, 960, and 970 series chips, with the Ascend 950PR expected in Q1 2026 and the Ascend 970 in Q4 2028 [1]. - The new SuperPoD nodes, based on the Ascend 950 and 960 chips, will offer unprecedented computing power, with the former supporting 8192 cards and the latter 15488 cards [1][4]. - Huawei's SuperPoD products are designed to enhance computing capabilities by bundling multiple AI chips together, positioning them as a direct competitor to Nvidia's technology [4][8]. Group 2: Strategic Implications - The launch of these chips signifies China's efforts to reduce reliance on Nvidia's AI hardware, marking a significant step towards domestic alternatives in the AI sector [2][8]. - Huawei's advancements in chip technology are seen as crucial for breaking supply bottlenecks in China's AI development, potentially enhancing the country's autonomous capabilities in AI computing [2][8]. - The introduction of the "Lingqu" interconnect protocol aims to link more computing resources, allowing for clusters exceeding 500,000 cards based on the Ascend 950 and over 990,000 cards based on the Ascend 960 [5]. Group 3: Competitive Landscape - Despite facing U.S. sanctions, Huawei is positioning itself as a leader in developing solutions that do not depend on American technology, thereby bolstering China's AI ambitions [8]. - The new technologies are viewed as an upgrade to Nvidia's NVLink, which facilitates high-speed communication between chips in servers, indicating Huawei's intent to compete effectively in the AI market [8]. - Research indicates that Huawei's products may outperform Nvidia's systems in certain performance metrics, despite the latter's advanced AI chips [8].