Core Viewpoint - Industrial Fulian has achieved a market capitalization of over 1 trillion yuan, marking its entry into the "trillion yuan market cap club" alongside major players in finance, energy, and consumer sectors [1][2]. Financial Performance - For the first half of 2025, Industrial Fulian reported revenue of 360.76 billion yuan, a year-on-year increase of 35.6%, and a net profit attributable to shareholders of 12.11 billion yuan, up 38.6% [1]. - In Q2 2025, the company achieved revenue exceeding 200 billion yuan for the first time, reaching 200.34 billion yuan, with a net profit of 6.88 billion yuan, reflecting a year-on-year growth of 51.1% [1][2]. Business Segments - The cloud computing segment saw overall server revenue growth exceeding 50% in Q2, with AI server revenue increasing by over 60% [2]. - The cloud computing segment is projected to surpass 50% of the company's total revenue in 2024, becoming the largest business segment [2]. Client Relationships - Industrial Fulian is a key partner for NVIDIA in AI server production, handling the entire manufacturing process from GPU modules to complete systems [2]. - The company has secured orders for NVIDIA's HGX and DGX AI server chip substrates and has developed high-performance AI servers like the H100 and H800 [2]. Product Development - The GB200 series products have entered mass production, with improving yield rates and increasing shipment volumes [3]. - The company is actively collaborating with clients on the design and development of next-generation products, maintaining a leading position in the industry [3]. Market Trends - The global data center network architecture is evolving towards higher bandwidth and lower latency, driven by the demands of AI model training and inference [3]. - The switch market is transitioning from 100G/200G to 400G/800G products, with predictions indicating that 800G switch ports will surpass 400G as the mainstream configuration by 2025 [3].

Market Performance - On May 29, the computing power and Nvidia supply chain rebounded, with Wanma Technology and Hongbo Co., Ltd. hitting the daily limit, and Yibo Technology rising over 10% [1] - Several companies, including Industrial Fulian, New Yisheng, Jin Baize, Alter, Helin Weina, and Maigemi Te, also showed strong performance [1] Company Developments - Hongbo Co., Ltd. (002229.SZ) reported a turnaround and is set to be capped; it has partnered with Nvidia to establish the Beijing AI Innovation Empowerment Center, with its subsidiary, Yingbo Shuke, as the sole designated operator [2] - Yibo Technology (301366.SZ) is transitioning from loss to profit and plans to reduce holdings; it has collaborations with Nvidia and Intel [2] - Alter (300825.SZ) has officially become an Nvidia Solution Advisor partner, working on simulation environments for autonomous vehicle testing using Nvidia's Omniverse platform [2] - Industrial Fulian (601138.SS) is developing and mass-producing high-performance AI servers for Nvidia, including the H100 and H800 models [2] - Jin Baize (301041.SZ) is involved in developing custom carrier boards based on Nvidia's Jetson AGX Xavier platform [2] - Huaguan Technology (603228.SS) is on Nvidia's qualified supplier list and has begun bulk supply for AI server products [2] Nvidia Financial Performance - Nvidia reported Q1 FY2026 revenue of $44.1 billion, a 69% year-over-year increase, exceeding market expectations by $9 billion [3] - The company provided a Q2 revenue guidance of $45 billion ±2%, indicating stable performance [5] - The CFO noted significant improvements in manufacturing yield and strong delivery of rack shipments, with major customers deploying nearly 1,000 NVL72 racks weekly [5] Industry Trends - The US International Trade Court has suspended the implementation of tariffs announced by the Trump administration, which may ease trade tensions [4] - Nvidia's suppliers are accelerating the production of flagship AI data center racks following the resolution of technical issues that caused shipment delays [4] - The easing of US-China tariff negotiations may create short-term valuation recovery opportunities for Nvidia's supply chain, Tesla's supply chain, and Apple's supply chain [5] - Domestic cloud vendors have reported a decline in capital expenditures, potentially linked to US computing power restrictions, with a forecast for explosive growth in demand for domestic computing power chips [5]