Investment Rating - The industry investment rating is "Overweight" [5] Core Viewpoints - 2026 is expected to be the year of significant industrialization for liquid cooling technology, with a focus on investment opportunities in this area [4] - NVIDIA's GPU power is projected to increase significantly, with the R200 chip expected to reach 2300W and the R300 chip potentially exceeding 4000W by 2027, leading to a substantial market size for liquid cooling systems [1] - The liquid cooling market for Google’s TPUv7 is estimated to be between $2.4 billion and $2.9 billion in 2026, with a significant increase in chip shipments anticipated [2] - IDC forecasts that the domestic liquid cooling server market in China will exceed $10 billion by 2028, driven by a compound annual growth rate of 47.6% from 2023 to 2028 [3] Summary by Sections Section 1: NVIDIA Liquid Cooling Market - NVIDIA's liquid cooling market size is estimated to be between $6.9 billion and $9.7 billion for 2026, based on projected GPU orders [1] Section 2: Google TPU Liquid Cooling Market - The estimated market size for Google’s TPUv7 liquid cooling systems is projected to be between $2.4 billion and $2.9 billion in 2026, with significant chip shipments expected [2] Section 3: Domestic Market Growth - The Chinese liquid cooling server market is expected to reach $2.37 billion in 2024, a 67% increase from 2023, with a projected market size of $10.2 billion by 2028 [3] Section 4: Investment Recommendations - It is recommended to focus on leading companies with technological barriers that can enter the supply chains of major domestic and international manufacturers, as well as second-tier companies that can leverage the growth in the liquid cooling industry [4]

Core Viewpoint - The computer industry index has underperformed compared to major stock indices, indicating a challenging market environment for the sector [1][2]. Market Review - During the week of November 3 to November 7, the Shanghai Composite Index rose by 1.08%, the ChiNext Index increased by 0.65%, and the CSI 300 Index gained 0.82%. In contrast, the computer (Shenwan) index fell by 2.54%, lagging behind the Shanghai Composite by 3.62 percentage points, the ChiNext by 3.19 percentage points, and the CSI 300 by 3.36 percentage points, ranking 30th among all industries [1][2]. Weekly Insights - NVIDIA is leading the trend of supernodes, a technology architecture for building large-scale computing clusters, which integrates thousands of GPUs into a single logical unit. The latest NVLink technology has reached its fifth generation, with each GPU having 18 NVLink connections, achieving a total bandwidth of 1800GB/s, significantly surpassing PCIe Gen6 [3]. - NVIDIA's upcoming NVL72, set to be released in March 2024, will integrate 36 Grace CPUs and 72 Blackwell GPUs into a liquid-cooled cabinet, delivering a total of 720 PFLOPs for AI training and 1440 PFLOPs for inference [3]. Domestic Major Players Accelerating Supernode Layout - **Inspur**: On November 6, during the World Internet Conference, Inspur launched the world's first single-cabinet 640-card supernode, achieving a 20-fold increase in computing density [4]. - **Huawei**: In April, Huawei introduced the CloudMatrix384 supernode, capable of creating a super-large cluster with over 160,000 cards. As of September, over 300 units have been sold, primarily to government and enterprise clients [4]. - **Alibaba**: At the 2025 Cloud Computing Conference, Alibaba Cloud unveiled the Panjiu 128 supernode AI server, which enhances inference performance by 50% compared to traditional architectures [5]. - **Baidu**: Announced the launch of the Kunlun supernode at the 2025 Baidu Cloud Intelligence Conference, making supercomputing capabilities available [5]. - **ZTE**: Developed a supernode server with 64 GPUs, featuring an innovative design that reduces latency to the nanosecond level [5]. - **Inspur Information**: Released the "Yuan Nao SD200" supernode AI server aimed at trillion-parameter models [5]. Investment Recommendations - Focus on companies involved in computing power such as Cambricon, Haiguang Information, Inspur, and others [6]. - Consider AIDC-related firms like Kehua Data and Yunse Intelligent [6]. - Explore AI application companies including Kingsoft Office, iFlytek, and others [6].

Core Insights - The eighth China Enterprise Forum emphasizes the importance of innovation in reshaping growth engines and enhancing global competitiveness [1] - Chinese enterprises play a crucial role in shaping global innovation patterns and promoting sustainable development [2] Group 1: Innovation and Growth - Enterprises are key components of the global economic system, and innovation is essential for reshaping growth dynamics and countering external uncertainties [1] - Continuous optimization of technology innovation mechanisms and incentive systems is supported by the State-owned Assets Supervision and Administration Commission [1] - The integration of ESG principles into corporate strategies is vital for building competitive advantages and benefiting society [5] Group 2: Sustainable Development - The transition to low-carbon energy and the promotion of green technologies are critical for achieving sustainable development [4][5] - Collaboration between international partners is essential for addressing energy security and achieving sustainable development goals [7] - The modernization of power grids, particularly ultra-high voltage grids, is crucial for stable green electricity supply [4] Group 3: Global Cooperation - Joint innovation between Chinese and foreign enterprises is key to creating future opportunities and addressing geopolitical challenges [7] - The establishment of regional supply chain collaboration networks can enhance resilience and risk management in complex environments [7][8] - Cross-border cooperation in green finance and technology sharing can facilitate the scaling of green projects [4] Group 4: Market Dynamics - The changing cost structure of global supply chains necessitates a reevaluation of local market relationships by multinational companies [8] - The current global supply chain is undergoing deep adjustments, and open cooperation is essential for achieving win-win outcomes [8]

Core Insights - The demand for AI computing power is accelerating from single-point breakthroughs to system-level integration, with "super nodes" emerging as a new product form to overcome traditional computing bottlenecks [1][2] - Major Chinese tech companies are leading the development of super nodes, with Huawei and Alibaba launching advanced AI server products that significantly enhance computing capabilities [1][4] Group 1: Super Node Development - The super node architecture is defined as an AI system composed of AI computing nodes interconnected through high-speed protocols, supporting 32 or more AI chips with bandwidth of at least 400GB/s [2] - Huawei's CloudMatrix384 super node integrates 384 Ascend NPUs and 192 Kunpeng CPUs, achieving a single-card inference throughput of 2300 Tokens/s [1][3] - Alibaba's new generation Panjiu 128 super node AI server features self-developed CIPU 2.0 chips and supports 128 AI computing chips in a single cabinet [1][4] Group 2: Global AI Infrastructure Trends - Global tech giants like NVIDIA, OpenAI, and Meta are accelerating AI infrastructure development, with significant investments planned for the coming years [1][7] - OpenAI has partnered with AMD to deploy 6 gigawatts of AMD GPU computing power, and plans to use NVIDIA systems for its next-generation AI infrastructure [7][8] - NVIDIA executives project that AI infrastructure spending will reach $3 trillion to $4 trillion by 2030, indicating a robust growth trajectory for the sector [9][10] Group 3: Industry Challenges and Opportunities - The AI computing landscape faces challenges such as communication walls, power consumption, and complexity, necessitating the development of super nodes [2] - The core challenge for the domestic computing industry lies in the maturity of the ecosystem, despite opportunities arising from advancements in chip manufacturing and other related fields [5][6]

Core Insights - The AI City Summit held during Huawei Connect 2025 focused on the theme of building an intelligent world cloud foundation to accelerate smart governance and industrial upgrades [1][3] - The summit gathered industry experts, government representatives, and ecosystem partners to discuss the rapid evolution of AI technology and its role in driving systematic innovation in smart city construction [1][3] Group 1: AI CITY Development - Huawei and the National Information Center released the "AI CITY 2025 Government and Industry Pioneer Cases," highlighting the transformative impact of AI on urban governance and development paradigms [3] - The AI CITY initiative aims to integrate AI technology deeply into urban modernization and industrial advancement, marking a new phase of comprehensive intelligent transformation in China's smart city development [3][5] Group 2: AI CITY "1234MNX" Framework - The AI CITY "1234MNX" framework addresses challenges in smart city construction, including data silos, insufficient AI scene adaptation, and information security issues [5][6] - The framework consists of one intelligent cloud foundation, two major security systems, three AI engineering platforms, and four types of operations, aiming to enhance resource efficiency and model application [6] Group 3: Practical Applications and Achievements - The framework has shown initial value in practical applications, such as enhancing government services in Shenzhen and revolutionizing urban management in Guangzhou [6][8] - In the industrial sector, the AI CITY initiative has significantly reduced product design cycles and improved manufacturing accuracy, demonstrating its effectiveness in driving industrial upgrades [6][8] Group 4: Future Outlook and Collaboration - Huawei's vision for the future of AI CITY includes collaboration with research institutions and enterprises to innovate and create intelligent upgrade cases for urban governance and industry [7][11] - The company emphasizes the importance of talent cultivation and invites partners to join the AI CITY industry innovation plan to promote comprehensive intelligent transformation [7][11] Group 5: AI Infrastructure and Ecosystem - Huawei Cloud's infrastructure developments, such as the CloudMatrix384 super node and the Pangu model, are designed to support large-scale AI applications and enhance urban decision-making capabilities [8][9] - The company aims to build a robust AI ecosystem that fosters local AI applications, industry ecosystems, and professional talent development, contributing to the overall impact of AI in urban settings [9][11]

Core Viewpoint - The AI City Summit held during Huawei's Connect 2025 focuses on the integration of artificial intelligence in urban governance and industrial upgrades, emphasizing the transition to a smart city framework driven by AI technology [1][3]. Group 1: AI CITY Framework - Huawei and the National Information Center released the "AI CITY 2025 Government and Industry Pioneer Cases," highlighting the transformative impact of AI on urban governance and development [3]. - The AI CITY "1234MNX" framework addresses challenges in urban governance and industrial upgrades, moving beyond traditional data-driven smart cities to a model driven by "models + knowledge" [5][6]. - The framework includes a unified intelligent cloud base, a dual security system, three AI engineering platforms, and various operational categories to enhance resource efficiency and innovation [6]. Group 2: Practical Applications and Achievements - The AI CITY framework has shown initial value in practical applications, such as the intelligent upgrade in Shenzhen, which serves over 150,000 users daily across 240 scenarios [6]. - In Guangzhou, the "1+4+N" smart city management system has revolutionized urban management, while the industrial platform in Huadu has significantly reduced product design cycles and improved efficiency [6]. - The Dongguan AI model center has increased manufacturing line inspection accuracy to 99%, showcasing the practical benefits of AI integration in various sectors [6]. Group 3: Future Prospects and Initiatives - Huawei's future vision for AI CITY includes collaboration with research institutions and enterprises to innovate urban governance and industrial upgrade cases [7]. - The company aims to enhance AI talent cultivation to support long-term industrial development and invites partners to join the AI CITY industry innovation plan [7]. - Huawei emphasizes the importance of a robust computing foundation and the development of AI models to support urban applications and ecosystem growth [8][12]. Group 4: AI's Role in Urban Development - AI is positioned as a core driver for transforming urban production, lifestyle, and governance, with significant implications for public services and industrial applications [11]. - Various successful AI applications have been implemented across cities, such as the data circulation platform in Shanghai and the digital assistant in Guizhou, enhancing service efficiency and user experience [11][12]. - Huawei's commitment to building an open and shared computing system aims to integrate global capabilities into local AI ecosystems, fostering innovation and collaboration [12].

Core Viewpoint - Huawei Cloud has made significant advancements in AI computing power, positioning itself as a key player in the industry amidst growing demand for computational resources driven by AI applications [1][4]. Group 1: Technological Advancements - The CloudMatrix384 super node, launched in April 2025, has evolved to enhance its capabilities, addressing the ongoing "computing power anxiety" in the AI industry [3][6]. - Huawei Cloud's AI server planning includes an upgrade of CloudMatrix specifications from 384 cards to a future capacity of 8192 cards, enabling the formation of massive AI clusters [5][19]. - The introduction of the EMS elastic memory storage service significantly reduces latency during multi-turn dialogues, enhancing overall performance [5][19]. Group 2: Market Positioning - Huawei Cloud's "computing power black land" concept provides fertile ground for enterprises and developers to innovate in AI, supported by a robust ecosystem of technological advancements [7][28]. - The strategy of combining intelligent computing (Tokens service) and general computing (Kunpeng cloud services) allows Huawei Cloud to meet diverse industry needs [9][11]. Group 3: Tokens Service - The Tokens service, based on the CloudMatrix384 super node, offers a new billing model that charges based on actual token consumption, significantly lowering AI inference costs [14][16]. - The daily average token consumption in China surged from 100 billion to over 30 trillion within a year and a half, indicating a dramatic increase in demand for AI computational resources [15]. Group 4: Industry Applications - Huawei Cloud's infrastructure supports various applications, including high-precision scientific research and AI-driven internet applications, demonstrating its versatility and capability to handle complex tasks [21][23]. - The collaboration with national research institutions, such as the Chinese Academy of Sciences, highlights Huawei Cloud's commitment to providing reliable and high-performance computing resources for advanced scientific models [25].

Core Insights - Huawei Cloud Stack 8.6 new version is set to adapt to CloudMatrix 384 super nodes, marking a significant advancement in hybrid cloud technology [1] - The official commercial launch of this new version is scheduled for October 30 [1] Company Developments - Huawei is introducing the industry's first hybrid cloud that supports CloudMatrix 384 super nodes, indicating a strong position in the cloud computing market [1] Industry Trends - The adaptation of CloudMatrix 384 super nodes by Huawei Cloud Stack reflects ongoing innovations in hybrid cloud solutions, which are becoming increasingly critical for businesses [1]

Core Insights - Huawei officially launched Huawei Cloud Stack 8.6 during the Huawei Connect 2025 event, with the announcement that it is now compatible with CloudMatrix 384 super nodes [1] - Over 5,500 government and enterprise customers globally have chosen Huawei Cloud Stack for cloud innovation [1] Group 1 - Huawei Cloud Stack 8.6 was introduced at the Huawei Connect 2025 event [1] - The new version is compatible with CloudMatrix 384 super nodes [1] - The adoption rate includes more than 5,500 global government and enterprise clients [1]

Group 1 - Huawei's Full Connection Conference 2025 will be held from September 18 to 20, focusing on "Elevating Industry Intelligence" and showcasing Huawei's comprehensive intelligent strategy and new digital infrastructure products [1] - The conference will feature the Ascend AI Industry Summit, where the Ascend scenario-based integrated machine will be launched [1] - Huawei Cloud has introduced the CloudMatrix384 super node, which integrates 384 Ascend NPUs and 192 Kunpeng CPUs, achieving a computing power of 300 PFlops [1] Group 2 - Advanced Communication is a diamond distributor for Huawei, responsible for the sales of Huawei's Ascend integrated machines [2] - Softcom Power has collaborated with a major telecommunications equipment company to launch the AI robot - Ascend integrated machine [3]