Investment Rating - The report does not explicitly state an investment rating for the industry [31]. Core Insights - The TMT sector experienced varied performance in the week of May 19-23, with declines in major segments such as electronics (-2.17%) and computing (-3.02%), while sub-sectors like other communication equipment (+1.81%) showed positive growth [3]. - The AI ecosystem is continuously improving globally, highlighted by Nvidia's introduction of NVlink Fusion, which allows partners to integrate their CPUs or ASICs into Nvidia's architecture, enhancing AI system customization [3]. - In China, Huawei's launch of PCs running on the Harmony OS marks a significant step in domestic operating system development, potentially challenging Windows and MacOS market shares [3]. - Xiaomi's release of self-developed chips, including the 3nm process-based Xuanjie O1, positions the company competitively in the global SoC market [3]. Weekly Market Review - The TMT sector's performance from May 19-23 showed declines across major industries, with the media sector down by 0.16%, electronics by 2.17%, communication by 2.31%, and computing by 3.02% [3]. - The top-performing sub-sectors included other communication equipment (+1.81%) and gaming III (+1.63%), while the worst performers were communication network devices and components (-3.87%) and integrated circuit packaging and testing (-3.50%) [3]. Industry News and Key Company Announcements - Significant events included Nvidia's announcement of new AI technologies at Computex 2025 and Google's I/O developer conference showcasing a 50-fold increase in AI usage [3][17]. - Huawei's launch of Harmony OS PCs and Xiaomi's introduction of self-developed chips are pivotal in advancing domestic technology and reducing reliance on foreign systems [3][19]. - The report highlights the rapid growth of AI applications, with companies like OpenAI and Google making strides in AI capabilities and market penetration [3][19].

Investment Rating - The investment rating for NVIDIA Corp. is "Overweight" with a price target of $160.00, while the stock closed at $135.40 on May 16, 2025 [4]. Core Insights - NVIDIA announced NVlink Fusion, enhancing interconnect technology for a broader ecosystem, which could boost communication infrastructure revenues [2][6]. - The company introduced RTX PRO servers aimed at the enterprise AI inference market, featuring advanced graphics cards and networking technologies [2]. - A new partnership with Foxconn and the Taiwan government was established to develop a supercomputer with 10,000 Blackwell GPUs, indicating strong R&D collaboration [2]. - Despite challenges from the US Commerce Department's ban on H20 in China, which poses a $5 billion headwind, there is a clear path for re-acceleration in the second half of the year [2][6]. Summary by Sections Product Developments - NVlink Fusion extends capabilities for custom ASICs and non-NVIDIA CPUs, potentially enhancing competition and customer choice [2]. - RTX PRO servers are designed for enterprise AI inference, featuring up to 8 Blackwell RTX Pro graphics cards [2]. - The DGX Spark and DGX Station workstations are nearing customer availability, with Spark launching in July 2025 [2]. Market Position and Challenges - The report acknowledges near-term challenges but emphasizes a strong potential for growth in the second half of the year [2][6]. - Intermediate-term concerns regarding cloud vendor support and supply chain bottlenecks are being addressed [2]. Financial Metrics - NVIDIA's market capitalization is approximately $3.39 billion, with a 52-week price range of $86.62 to $153.13 [4].