Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - Nvidia's performance exceeded expectations, with Q4 FY2026 revenue reaching $68.1 billion, a year-on-year increase of 73% and a quarter-on-quarter increase of approximately 19%. The data center business revenue was $62.3 billion, up 75% year-on-year and 22% quarter-on-quarter, driven by the continuous release of Blackwell and Blackwell Ultra products [5][13] - DeepSeek, in collaboration with Tsinghua University and Peking University, introduced the DualPath system to address storage bandwidth bottlenecks in LLM inference, achieving an average throughput increase of 1.96 times [6][16] - The global AI industry is expected to resonate, with significant capital expenditure increases from major players like Google and Meta, indicating a robust growth trajectory for AI-related sectors [14][18] Summary by Sections Nvidia Performance - Nvidia's Q4 FY2026 revenue was $68.1 billion, with a 73% year-on-year growth and a 19% quarter-on-quarter growth. Data center revenue reached $62.3 billion, marking a 75% year-on-year increase and a 22% quarter-on-quarter increase. The growth was primarily due to the release of Blackwell and Blackwell Ultra products, with the Grace Blackwell system contributing approximately two-thirds of the data center revenue [5][13][14] DeepSeek Innovation - DeepSeek's DualPath system addresses the KV-Cache storage bottleneck in LLM inference, significantly improving online inference throughput by 1.96 times. This innovation is seen as a milestone in AI computing, enhancing hardware utilization and facilitating the commercial application of large models [6][16] AI Industry Outlook - The report highlights a strong outlook for the AI industry, with major companies like Google and Meta increasing their capital expenditures significantly. This trend is expected to support the growth of AI computing and related technologies [14][18] Communication Data Tracking - As of December 2025, China had 4.84 million 5G base stations, with 1.204 billion 5G mobile users, reflecting an 18.74% year-on-year growth. However, 5G mobile phone shipments decreased by 27.3% year-on-year [28][30][41]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - Nvidia's FY2026 Q4 revenue reached $68.1 billion, a year-on-year increase of 73% and a quarter-on-quarter increase of approximately 19%. The data center business revenue was $62.3 billion, growing 75% year-on-year and 22% quarter-on-quarter, primarily driven by the release of Blackwell and Blackwell Ultra products [5][13] - DeepSeek, in collaboration with Tsinghua University and Peking University, introduced the DualPath system, which significantly enhances online inference throughput by an average of 1.96 times, addressing storage bandwidth bottlenecks in LLM inference [6][16] - The report emphasizes the ongoing global AI resonance, highlighting four main investment themes: optical networks, liquid cooling, domestic computing power, and satellite internet [7][18] Summary by Sections Nvidia Performance - Nvidia's data center revenue is projected to continue growing, with an expected FY2027 Q1 revenue of $78 billion, not accounting for Chinese data center income. The demand for Nvidia's AI chips from major cloud service providers remains strong, contributing over 50% of the data center revenue [14][15] DeepSeek Innovation - The DualPath system represents a milestone innovation in AI computing power, effectively breaking traditional single-path dependencies and optimizing model efficiency and cost structure. This collaboration between academia and industry is expected to establish technological barriers in the domestic computing power industry [6][16][17] Investment Recommendations - The report recommends focusing on three core AI themes: optical networks, liquid cooling, and domestic computing power, while also considering AI applications, telecom operators, and satellite internet & 6G sectors. Specific recommended stocks include Zhongji Xuchuang, Xin Yi Sheng, and others across various segments [18][19][20] Communication Data Tracking - As of December 2025, China had 4.84 million 5G base stations, with 1.204 billion 5G mobile phone users, reflecting an 18.74% year-on-year growth. However, 5G mobile phone shipments saw a decline of 27.3% year-on-year [28][30][41]