Core Insights - Morgan Stanley predicts that 2026 will be a pivotal year for explosive growth in AI hardware, driven primarily by strong demand for AI server hardware [2][3] - The report highlights a significant redesign upgrade in AI server hardware, propelled by GPU and ASIC advancements, with notable upcoming releases from NVIDIA and AMD [2][4] AI Server Rack Demand Surge - The demand for AI server racks is expected to surge from approximately 28,000 units in 2025 to at least 60,000 units in 2026, representing over 100% growth [7] - The transition from the H100/H200 era to the new cycle driven by NVIDIA's GB200/300 and Vera Rubin platforms is emphasized [4] Power Consumption and Cooling Solutions - The report identifies power and cooling challenges as significant opportunities for suppliers, with power solutions expected to transition to 800V high-voltage direct current (HVDC) architecture [11][13] - By 2027, the value of power solutions for Rubin Ultra cabinets is projected to exceed ten times the current value of GB200 server cabinets [13] Liquid Cooling as a Standard - Liquid cooling has shifted from an optional solution to a necessity, with the total value of cooling components for a GB300 cabinet estimated at approximately $49,860, increasing to $55,710 for the next-generation Vera Rubin platform [15][16] PCB and Interconnect Upgrades - The upgrade of AI platforms is expected to have a profound impact on printed circuit boards (PCBs) and interconnect components, with increasing requirements for layer counts and material grades [20][21] - The transition from ultra-low-loss to extreme low-loss materials in PCB manufacturing is anticipated to create structural growth opportunities for suppliers with the necessary technical capabilities [22][23]