Investment Rating - The report suggests a focus on the AI Infrastructure industry chain, indicating a positive outlook for investment opportunities in this sector [2][26]. Core Insights - Nvidia's FY26Q3 revenue reached $57 billion, a 62% year-over-year increase, exceeding market expectations. The data center business contributed $51.2 billion, growing 66% year-over-year, driven by Blackwell shipments [26]. - The report highlights that Nvidia's guidance for the next quarter is $65 billion, also above market expectations, with a Non-GAAP gross margin of 75% [26]. - The anticipated GPU shipments for the Blackwell and Rubin platforms are expected to reach 20 million units by the end of 2026, with projected sales of $500 billion [26]. Market Review and Valuation - The Shenwan Electronics sector experienced a cumulative decline of 7.33% over the past two weeks (11/07-11/20), underperforming the CSI 300 index by 4.60 percentage points, ranking 31st among Shenwan industries [10]. - As of November 20, the PE TTM for the Shenwan Electronics sector (excluding negative values) is 56.82 times, positioned at the 94.90% percentile over the past five years and 89.80% over the past ten years [10][15]. Industry News - Tencent's Liu Chiping mentioned plans for WeChat to eventually launch an AI assistant to help users complete various tasks within the app [19]. - Google has officially released the Gemini 3 model, which significantly outperforms competitors' models [19]. - Nvidia and Microsoft announced a strategic partnership with Anthropic, with Nvidia committing up to $10 billion and Microsoft up to $5 billion [19]. Company Announcements - On November 17, Shengyi Electronics announced a fundraising of up to 2.6 billion yuan for projects related to AI computing and smart manufacturing [18]. - The report also notes significant revenue growth for companies like Huadian and Lixun Precision, driven by emerging computing demands [27][30].

Group 1: Market Overview - The technology sector is currently experiencing significant momentum, with Google’s new Gemini 3 model receiving overwhelmingly positive reviews, leading to a stock price increase of over 7%, reaching a historical high [3] - Nvidia, a key player in the AI sector, saw its stock rise by 2.85% ahead of its upcoming Q3 earnings report, reflecting strong market expectations [3] - Nvidia holds an 84% share of the global independent GPU market and has a PC shipment volume nearly 4.5 times that of AMD, indicating its critical role in the AI industry [3] Group 2: Investor Sentiment - Some investors are selling technology stocks to lock in profits, concerned that the AI hype may have inflated valuations to unsustainable levels [4] - Despite these concerns, the long-term trend of AI is viewed as a genuine industry transformation rather than a short-term speculative bubble [4] - Wolfe Research suggests that fears of an AI bubble bursting are premature, as technology and communication service companies exhibit strong risk resilience [4] Group 3: Federal Reserve Insights - The October Federal Reserve meeting revealed significant divisions among officials regarding interest rate policies, with some advocating for rate cuts while others express concerns about inflation targets [5] - Market expectations for a hold on rates in December have risen to nearly 70%, indicating a cautious approach from the Fed [5] - The Fed's focus on avoiding abrupt revaluations in AI investments suggests a regulatory awareness aimed at preventing market instability, which could benefit long-term investors [5] Group 4: Investment Strategy - The recommended investment strategy emphasizes observing trends and waiting for the right timing rather than chasing hot stocks [6] - Analysts expect Nvidia's Q3 revenue to grow by 56% year-over-year, reaching $54.92 billion, indicating strong fundamentals [6] - It is advised to wait for Nvidia to report better-than-expected earnings or for technical adjustments before increasing positions, highlighting the importance of price in long-term investments [6]