Group 1 - Huawei will release breakthrough technology in AI inference at the 2025 Financial AI Inference Application Landing and Development Forum on August 12, which may reduce China's reliance on HBM technology and enhance domestic AI model inference performance [1] - Huawei announced significant advancements in AI infrastructure at the Huawei Cloud Ecosystem Conference on April 10, introducing the CloudMatrix384 super node, which is designed to meet the massive computing power demands of the AI era and has been deployed at the Wuhu data center [1] - Huawei's CANN, a heterogeneous computing architecture for AI scenarios, will be fully open-sourced, aiming to optimize task scheduling and resource management to maximize the performance of Ascend chips [1] Group 2 - The Ascend platform has been widely applied in high-computing scenarios such as finance, electricity, transportation, and government, with strong order fulfillment capabilities driving continuous expansion of the industry chain [2] - The 10th Huawei Connect Conference will be held in Shanghai from September 18-20, 2025, presenting investment opportunities related to Huawei's Harmony and Ascend chains [2] Group 3 - Advanced Communication has officially launched the Ascend A800I A2 large model integrated machine [3] - Tuowei Information is a strategic partner of Huawei, focusing on the "Kunpeng/Ascend AI + Industry Large Model + Harmony" comprehensive strategy [4]

Investment Rating - The report rates the industry as "Outperforming the Market" [8]. Core Insights - The report identifies Huawei's future growth direction over the next decade as focusing on enterprise business, empowering various industries [3]. - Following multiple rounds of sanctions, Huawei has largely achieved a self-controlled full industrial chain [3]. - Huawei's enterprise business is expected to be the most certain growth direction in the coming years, as it aligns with the digital transformation of Chinese enterprises [5][6]. Summary by Sections Huawei's Next Decade of Growth - Huawei is accelerating the construction of a self-controlled soft and hard integrated digital ecosystem, focusing on the digital transformation of various industries [21]. - The company has shifted its revenue focus from overseas markets to domestic demand, with significant growth in the Chinese market since 2008 [22]. Enterprise Business as Core Increment - The enterprise business is a combination of "digital foundation + intelligent upgrade + industry customization," helping various organizations with their digital transformation [35]. - Huawei's enterprise business has expanded from hundreds of billions to a target of 260 billion by 2025, indicating strong growth potential [37]. Industry Corps and Full-Process Empowerment - Huawei has established 21 industry corps to implement its "All Intelligence" strategy, focusing on various sectors such as government, large enterprises, and manufacturing [40][43]. - The report outlines nine core directions for digital transformation across industries, including digital government, large enterprises, oil and gas mining, and education [45]. Market Space for Digital Transformation - The report estimates a massive market space for digital transformation, suggesting that if industrial enterprises allocate just 1% of their revenue to digitalization, it would represent a market space of 1.38 trillion [6][37].

Core Viewpoint - The report from CITIC Securities indicates that the demand for AI large model training and inference is continuously growing, with system-level computing expected to become the next generation of AI computing infrastructure [1] Group 1: System-Level Computing - System-level computing is anticipated to become the next generation of AI computing infrastructure, driven by the need for generality in foundational infrastructure to address future model developments [1] - The scaling law is rapidly evolving in post-training and online inference stages, with innovations in model architecture enhancing training capabilities [1] - The focus on hardware deployment for achieving higher throughput and lower latency in inference is becoming critical, with a shift towards cluster-based inference models [1] Group 2: Technical Aspects - The development of single-chip computing capabilities is outpacing advancements in communication technology, making communication efficiency a key factor for cluster performance [3] - Two primary methods for building large clusters are identified: Scale up (increasing resources per node) and Scale out (increasing the number of nodes), with Scale up being a significant future direction [3] - Notable examples include NVIDIA's NVL72 system and Huawei's CloudMatrix384 super node, which provide insights into industry development [3] Group 3: Industry Dynamics - The semiconductor industry typically utilizes mergers and acquisitions for technology integration and market expansion, with leading companies often pursuing these strategies to enhance their market position [4] - NVIDIA's acquisition of Mellanox exemplifies this strategy, expanding its NVLink technology to include RDMA networks for large-scale computing [4] - AMD's acquisition of ZT Systems has strengthened its system architecture design capabilities and data center solution delivery experience, contributing to the core of AI solutions [4][5]

Core Viewpoint - The A-share market is experiencing fluctuations, with the Sci-Tech Chip 50 ETF (588750) showing a slight increase of 0.77% as of April 21 [1] Company Performance - Cambrian Technology reported a revenue of 1.174 billion yuan for 2024, a year-on-year increase of 65.56%, and a net profit of -0.452 billion yuan, up 46.69% [3] - For Q1 2025, Cambrian achieved a revenue of 1.111 billion yuan, a staggering year-on-year growth of 4230.22%, with a net profit of 0.355 billion yuan, up 256.82% [3][4] - Longjiang Securities highlighted Cambrian as a leading AI chip company in China, entering a new phase of business expansion due to significant demand for computing power driven by AI development [4] Industry Trends - The AI chip market is projected to exceed $150 billion by 2025 and reach $400 billion by 2027, indicating a second growth curve for the chip industry [5] - The trend of domestic substitution in the semiconductor industry is accelerating, driven by changes in global trade dynamics and increased policy support for domestic production [5] - The development of domestic computing power is seen as an irreversible trend, with companies like Cambrian and Haiguang showing strong commercial viability and entering large-scale application phases [6] Market Sentiment - The Sci-Tech Chip 50 ETF (588750) is viewed as a promising investment opportunity, benefiting from both domestic substitution and increasing demand, as the sector is currently in an upward cycle [4][6] - The AI terminal market is expanding, with multiple manufacturers launching new products that enhance user experience and performance, further driving demand for chips [6]