Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of $44.06 billion for FY2026 Q1, representing a year-on-year increase of 69.2% and a quarter-on-quarter increase of 12.0% [2] - Non-GAAP net profit for the same period was $19.89 billion, up 30.6% year-on-year but down 9.8% quarter-on-quarter [2] - The Non-GAAP gross margin was 61.0%, which, after excluding the impact of H20, adjusted to 71.3%, showing a decrease of 7.6 percentage points year-on-year and 2.2 percentage points quarter-on-quarter [2] Revenue and Profitability - The data center business achieved revenue of $39.11 billion in FY2026 Q1, a year-on-year increase of 73.3% and a quarter-on-quarter increase of 9.9% [3] - The computing/network business revenue was $34.16 billion, up 76.1% year-on-year, while the networking business revenue was $4.96 billion, up 56.3% year-on-year [3] - The company expects FY2026 Q2 revenue to be around $45 billion, with a year-on-year growth of 49.8% and a quarter-on-quarter growth of 2.1% [4] Product Development and Market Position - The company launched several new products in the gaming and professional visualization sectors, including the NVIDIA GeForce RTX 5060/5070 graphics cards [5] - The professional visualization segment saw revenue of $5.1 billion, a year-on-year increase of 19.2% [5] - The automotive business reported revenue of $5.7 billion, up 72.3% year-on-year, with a partnership established with General Motors to develop next-generation vehicles and systems [5] Financial Forecasts - The company forecasts total revenue for FY2026 to be $205.53 billion, with a year-on-year growth of 57.5% [1] - The projected net profit for FY2026 is $104.84 billion, reflecting a year-on-year increase of 43.85% [1] - The earnings per share (EPS) is expected to reach $4.30 in FY2026, with a P/E ratio of 31.97 based on the latest diluted earnings [1]

Core Insights - Nvidia's CEO Jensen Huang emphasized the rapid growth of AI chip demand and the global data center market, predicting it will reach $1 trillion sooner than expected [2][8] - The introduction of the Blackwell Ultra GPU and the Nvidia Dynamo software aims to enhance AI inference efficiency and reduce costs [2][14] - Nvidia's advancements in autonomous driving technology, including the launch of the NVIDIA Halos safety system, highlight its commitment to improving vehicle safety and intelligence [11][12] Group 1: AI and Computing Evolution - Generative AI has fundamentally changed computing paradigms, shifting from retrieval-based to generation-based computing [4] - The development of reasoning AI allows machines to perform step-by-step reasoning, enhancing their problem-solving capabilities [6] - The industry is rapidly adapting to these changes, making AI increasingly useful and intelligent [6] Group 2: Data Center and Infrastructure Growth - Nvidia has sold 3.6 million Blackwell GPUs to major cloud platforms, with predictions of global data center capital expenditure reaching trillions by 2030 [8] - The transition from general computing to accelerated computing and machine learning is driving this growth [8][9] - Nvidia envisions a future where every industry will have AI factories dedicated to generating tokens for various applications [8][9] Group 3: Autonomous Driving Developments - Nvidia has partnered with General Motors to innovate in manufacturing AI, enterprise AI, and in-vehicle AI, enhancing the development of autonomous vehicles [11] - The use of Omniverse and Cosmos technologies accelerates AI development for autonomous driving, improving safety and decision-making [12][13] - The Halos safety system incorporates extensive safety evaluations and over 1,000 patents to ensure robust vehicle safety [11] Group 4: Future AI Roadmap - The Blackwell Ultra will be launched in the second half of the year, with major cloud service providers set to adopt it [16] - Future systems like Vera Rubin and Rubin Ultra are expected to significantly enhance AI computing capabilities, with launches planned for 2026 and 2027 respectively [16]

Group 1 - The report highlights the acceleration of the AI+ industry, with NVIDIA's GTC2025 conference showcasing new high-performance computing products that enhance AI inference capabilities, including the Blackwell Ultra GPU, which achieves 15 PetaFLOPS and improves inference speed by 2.5 times compared to the previous generation [2][4][18] - The introduction of NVIDIA Halos, a comprehensive safety system for autonomous driving, and the Isaac GR00T N1 model for humanoid robots, indicates significant advancements in AI applications across various sectors [3][19][30] - The report emphasizes the ongoing demand for computing power driven by AI workloads, suggesting a robust investment opportunity in the AI supply chain and related industries [4][32] Group 2 - The performance reports from major telecom operators reveal a continued increase in computing power investments, with China Unicom reporting a 4.6% revenue increase to 389.59 billion yuan and a 10.5% rise in net profit to 9.03 billion yuan for 2024 [7][20][34] - China Mobile's 2024 report shows a revenue of 1,040.76 billion yuan, up 3.1%, and a net profit of 138.37 billion yuan, reflecting a 5.0% increase, with significant capital expenditures planned for infrastructure and computing upgrades [8][21][39] - The report indicates that telecom operators are enhancing their computing infrastructure to support national initiatives like "East Data West Computing," which is expected to drive growth in the computing market and accelerate the evolution of data centers [21][40] Group 3 - The report suggests a focus on investment opportunities in various sectors, including telecom operators, main equipment manufacturers, and cloud computing, highlighting specific companies such as China Mobile, China Telecom, and ZTE Corporation as key players [9][22] - The telecom sector's performance is analyzed, with the communication index declining by 3.85%, indicating a market underperformance compared to the broader indices [5][13] - The report notes the increasing importance of AI infrastructure and services, with a projected growth in computing investments by telecom operators, which will further enhance their service capabilities and market competitiveness [7][40]

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected relative increase of over 10% in the industry index compared to the broader market within the next six months [11]. Core Insights - NVIDIA continues to lead the high-end AI chip development with the introduction of the Blackwell Ultra GPU, which features significant upgrades in HBM technology, achieving a FP4 precision computing power of 15 PetaFLOPS, a 2.5 times improvement over the previous Hopper architecture [2]. - The AI sector is entering a "big inference" era, with substantial demand for computing power. NVIDIA's CEO announced that major cloud service providers are expected to purchase 3.6 million Blackwell architecture chips by 2025, with data center spending projected to reach $1 trillion by 2028 [3]. - NVIDIA is enhancing its AI ecosystem by launching products tailored for various applications, including the Blackwell Ultra NVL72 cabinet for AI inference, which shows a 1.5 times performance improvement over its predecessor [3][4]. Summary by Sections Industry Events - The NVIDIA GTC 2025 conference was held from March 17 to 21, 2025, in San Jose, California, where CEO Jensen Huang discussed advancements in AI technology, chip product planning, and multi-domain collaborations [1]. AI Chip Development - The Blackwell Ultra GPU features advanced HBM3e memory with 288GB of VRAM, and NVIDIA has outlined a roadmap for three future GPU architectures: Rubin, Rubin Ultra, and Feynman [2]. AI Applications - NVIDIA's new products, including the Dynamo AI factory operating system, optimize the performance of AI models, achieving a 40 times performance increase over the Hopper architecture in inference tasks [3][4]. Investment Recommendations - The report suggests focusing on investment opportunities within the AI computing and application sectors, particularly in companies leading in HBM and CPO technologies, as well as domestic firms benefiting from China's new national system advantages [9].