Core Viewpoint - Starting from 2025, supernodes will become a significant technological innovation direction in the AI computing network, with increasing competition among AI chip manufacturers in both chip performance and Scale up network [1][5]. Group 1: Supernode Development - Nvidia has launched mature supernode solutions, with plans to release GH200 NVL72, GB200/GB300 NVL72, and VR200 NVL72 from 2024 to 2026 [1][3]. - The Blackwell architecture standardizes Scale up with GB200 NVL72 stabilizing the scale at 72 GPUs per cabinet, consisting of 18 Compute Trays and 9 Switch Trays [2]. - The Rubin architecture will enhance bandwidth, with the NVLink 6 Switch increasing single GPU interconnect bandwidth to 3.6 TB/s, up from 1.8 TB/s [2]. Group 2: Nvidia's Competitive Advantage - Nvidia maintains a leading position in the supernode market, with a projected shipment of approximately 2,800 units of GB200/300 NVL72 by 2025 [3]. - Future plans include the introduction of Vera Rubin NVL144 and Rubin Ultra NVL576, expanding interconnected GPUs from 72 to 576 [3]. - Innovations such as NVLink and NVLink Switch are crucial for achieving high bandwidth and low latency in AI training clusters, with NVLink 5 Switch supporting a total bandwidth of 130 TB/s for 72 GPUs [4]. Group 3: Industry Landscape and Investment Strategy - The global supernode competition landscape is still being established, with Nvidia currently in a leading position [6]. - The report suggests monitoring Nvidia's supernode supply chain, including components like PCB backplanes, high-speed copper cables, optical modules, and cooling systems [6]. - Chinese manufacturers are actively participating in the supernode and Scale up network sectors, with potential for domestic firms to gain a competitive edge [6].

Investment Rating - The report maintains a "Positive" outlook on the communication industry [2] Core Insights - The evolution of large language model (LLM) parameters from hundreds of billions to trillions and even hundreds of trillions necessitates tensor parallelism (TP) across servers, making the development of high-bandwidth, low-latency Scale up networks a mainstream technical path in the industry [4][18] - NVIDIA is positioned as a leader in the supernode space, with plans to launch multiple generations of supernodes from 2024 to 2026, including GH200 NVL72, GB200/GB300 NVL72, and VR200 NVL72 [5][43] - The advantages of NVIDIA's supernodes are built on NVLink and NVLink Switch technologies, which support high bandwidth and low latency data transmission essential for AI training clusters [6][86] Summary by Sections 1. High Bandwidth and Low Latency Requirements - The training of LLMs requires extremely high bandwidth and low latency, driving the innovation of supernodes as a key direction in AI computing networks [18] - The need for cross-server tensor parallelism (TP) and expert parallelism (EP) has led to the establishment of Scale up networks [8] 2. NVIDIA's Leading Advantage - NVIDIA's supernode solutions are based on NVLink and NVLink Switch, which have evolved from point-to-point connections to full interconnect communication [33] - The sixth generation of NVLink and NVLink Switch supports GPU-to-GPU communication bandwidth of 3.6TB/s, with total aggregated bandwidth of 260TB/s in the VR NVL72 system [33][75] 3. Supernode Specifications - The GB200 NVL72 supernode features 180 PFLOPS of TF32 Tensor Core computing power, 13.8TB of memory, and a memory bandwidth of 576TB/s, with a total exchange capacity of 129.6TB/s [47][48] - The VR200 NVL72 supernode, set to be released in 2026, will double the total exchange capacity to 259.2TB/s compared to the GB200 NVL72 [70][75] 4. Investment Strategy - Starting from 2025, supernodes will become a significant innovation direction in AI computing networks, with various global manufacturers entering the competition [9] - NVIDIA currently holds a leading position, and attention should be paid to its supernode supply chain, including PCB backplanes, high-speed copper cables, optical modules, and cooling systems [9]

Investment Rating - The investment rating for NVIDIA is "Buy" with a 6-month outlook [6]. Core Insights - NVIDIA reported record revenue of $39.3 billion for Q4 FY2024, a 78% year-over-year increase and a 12% quarter-over-quarter increase, surpassing Bloomberg consensus estimates of $38.2 billion [1]. - The company's data center business achieved a record revenue of $35.6 billion in Q4, exceeding Bloomberg consensus estimates of $34.1 billion, driven by strong sales of the Blackwell architecture [2]. - NVIDIA anticipates continued growth in computing power demand, supported by advancements in multi-modal models and inference optimization, with Blackwell architecture showing a 25-fold improvement in inference throughput compared to Hopper [4]. Revenue and Profit Dynamics - GAAP gross margin was reported at 73%, in line with Bloomberg consensus, while net profit reached $22.1 billion, exceeding expectations of $19.8 billion, resulting in a GAAP net profit margin of 56.2% [1]. - The company expects gross margins to recover to 75% by the end of FY2026 as production capacity ramps up [3]. Business Segment Performance - The networking segment is expected to see growth in the next quarter, with significant revenue increases from Spectrum X and NVLink Switch, as major cloud service providers build large AI infrastructures [5]. - Enterprise AI revenue nearly doubled year-over-year, driven by demand for model fine-tuning and GPU-accelerated data processing [5]. Future Projections - Revenue forecasts for FY2026-2028 have been raised to $228 billion, $335 billion, and $374.2 billion respectively, with GAAP net profit projections also increased to $124.9 billion, $175 billion, and $200 billion [6].

Investment Rating - The investment rating for NVIDIA is "Buy" with a target of over 20% relative return within the next six months [6]. Core Insights - NVIDIA reported record revenue of $39.3 billion for Q4 FY2024, a year-over-year increase of 78% and a quarter-over-quarter increase of 12%, surpassing Bloomberg consensus estimates of $38.2 billion [1]. - The data center business achieved a record revenue of $35.6 billion, exceeding Bloomberg consensus estimates of $34.1 billion, driven by strong sales of the Blackwell architecture [2]. - The company anticipates continued growth in computing power demand, supported by advancements in multi-modal models and inference optimization with the Blackwell architecture [4]. Revenue and Profit Performance - For Q4 FY2024, NVIDIA's GAAP gross margin was 73%, aligning with Bloomberg consensus expectations, while net profit reached $22.1 billion, exceeding expectations of $19.8 billion [1]. - GAAP earnings per share (EPS) for the quarter was $0.89, reflecting an 82% year-over-year increase and a 14% quarter-over-quarter increase [1]. Product and Capacity Dynamics - The initial production of Blackwell has led to a Non-GAAP gross margin of 73.5%, with expectations to recover to 75% by the end of FY2026 as production capacity ramps up [3]. - Blackwell's quarterly production capacity reached 15,000 GPUs, deployed across 350 manufacturing nodes, with major cloud service providers already utilizing Blackwell clusters [3]. Future Projections - Revenue forecasts for FY2026-2028 have been raised to $228 billion, $335 billion, and $374.2 billion respectively, with GAAP net profit projections adjusted to $124.9 billion, $175 billion, and $200 billion [6]. - The company expects the demand for computing power to continue to rise, driven by advancements in AI and cloud computing [4]. Business Segment Growth - The networking segment is expected to recover growth in the next quarter, with significant revenue increases from Spectrum X and NVLink Switch, which are being adopted by major cloud service providers [5]. - Enterprise AI revenue has nearly doubled year-over-year, driven by increasing demand for model fine-tuning and GPU-accelerated data processing [5].

Investment Rating - The investment rating for NVIDIA is "Buy" with a target of over 20% relative return within the next six months [6]. Core Insights - NVIDIA reported record revenue of $39.3 billion for Q4 FY2024, a 78% year-over-year increase and a 12% quarter-over-quarter increase, surpassing Bloomberg consensus estimates of $38.2 billion [1]. - The data center business achieved a record revenue of $35.6 billion, exceeding Bloomberg consensus estimates of $34.1 billion, driven by strong sales of the Blackwell architecture [2]. - The company anticipates continued growth in computing power demand, supported by advancements in multi-modal models and inference optimization, with Blackwell architecture showing a 25-fold improvement in inference throughput compared to the previous generation [4]. Revenue and Profit Performance - NVIDIA's GAAP gross margin was 73%, in line with Bloomberg consensus, while net profit reached $22.1 billion, exceeding expectations of $19.8 billion, resulting in a GAAP net profit margin of 56.2% [1]. - The GAAP earnings per share (EPS) was $0.89, reflecting an 82% year-over-year increase and a 14% quarter-over-quarter increase [1]. Business Segment Highlights - The Blackwell architecture's initial production capacity reached 15,000 GPUs, with deployments across major cloud service providers like Azure, AWS, and GCP [3]. - The networking segment is expected to recover growth in the next quarter, with significant revenue increases from Spectrum X and NVLink Switch, as cloud service providers build large AI infrastructures [5]. - Enterprise AI revenue nearly doubled year-over-year, driven by demand for model fine-tuning and GPU-accelerated data processing [5]. Future Projections - Revenue forecasts for FY2026-2028 have been raised to $228 billion, $335 billion, and $374.2 billion respectively, with GAAP net profit projections of $124.9 billion, $175 billion, and $200 billion [6].