1. Report Industry Investment Ratings - Stock Index Futures: Oscillating [1] - Treasury Bond Futures: Relatively Strong [2] 2. Core Views of the Report - The A-share market adjusted with oscillations throughout the day, with the ChiNext Index dropping nearly 2%. AI-related concepts and some sectors like oil and gas and power grid equipment showed strength, while the commercial spaceflight concept declined. The trading volume reached 3.7 trillion yuan, setting a new record. The rise of the A-share index at the beginning of 2026 was driven by global technological development, the Fed's potential interest rate cuts, and the weakening dollar. The tense global geopolitical situation led to a short-term surge in rare metals. With the index at a high level and heavy trading volume, caution is advised when chasing high prices, and it is recommended to wait and see [1]. - On Tuesday, treasury bond futures closed with gains in some contracts. The central bank conducted reverse repurchase operations, resulting in a net capital withdrawal. The short-term sufficient liquidity supports the bond market, but factors such as economic stability, rising inflation, and cautiousness towards interest rate cuts pose certain constraints. The bond market is expected to remain in a range-bound oscillation pattern in the short term [2]. 3. Summary by Relevant Catalogs 3.1 Research Views - **Stock Index Futures**: The market adjusted with oscillations, with the ChiNext Index down nearly 2%. AI medical, AI pharmaceutical, AI marketing, oil and gas, and power grid equipment sectors performed well, while the commercial spaceflight concept retreated. The trading volume reached 3.7 trillion yuan, a new record. The index rise at the beginning of 2026 was driven by global technological development, the Fed's potential interest rate cuts, and the weakening dollar. The tense geopolitical situation led to a short - term surge in rare metals. With the index at a high level and heavy trading volume, caution is needed when chasing high prices, and it is advisable to wait and see [1]. - **Treasury Bond Futures**: On Tuesday, the 30 - year, 10 - year, and 5 - year treasury bond futures contracts closed higher, while the 2 - year contract remained stable. The central bank conducted 3586 billion yuan of 7 - day reverse repurchase operations, resulting in a net capital withdrawal of 2576 billion yuan. The short - term sufficient liquidity supports the bond market, but economic stability, rising inflation, and cautiousness towards interest rate cuts pose constraints. The bond market is expected to remain range - bound in the short term [2]. 3.2 Price Changes on the Day - **Stock Index Futures**: On January 13, 2026, IH decreased by 0.08%, IF by 0.32%, IC by 1.28%, and IM by 1.82% compared to the previous day [4]. - **Stock Indexes**: The Shanghai Composite 50 Index decreased by 0.34%, the CSI 300 Index by 0.60%, the CSI 500 Index by 1.28%, and the CSI 1000 Index by 1.84% [4]. - **Treasury Bond Futures**: TS decreased by 0.01%, TF remained unchanged, T increased slightly by 0.00%, and TL increased by 0.13% [4]. 3.3 Market News - The market adjusted with oscillations throughout the day, with the ChiNext Index down nearly 2%. AI - related concepts and some sectors like oil and gas and power grid equipment showed strength, while the commercial spaceflight concept declined. The trading volume reached 3.7 trillion yuan, a new record. The Shanghai Composite Index closed down 0.64%, the Shenzhen Component Index down 1.37%, and the ChiNext Index down 1.96% [5]. - AI medical, AI pharmaceutical, AI marketing, and oil and gas sectors led the gains, while commercial spaceflight, controlled nuclear fusion, quantum technology, and optical communication sectors led the losses [5]. - There were 1520 rising stocks, 74 daily limit stocks, 3547 falling stocks, 56 daily limit down stocks, and 58 stocks with broken daily limits, with a broken - limit rate of 47% [5]. 3.4 Chart Analysis - **Stock Index Futures**: The report presents the historical price trends and basis trends of IH, IF, IC, and IM contracts [7][9][11]. - **Treasury Bond Futures**: The report shows the historical price trends, basis trends, inter - period spread trends, cross - variety spread trends, and capital interest rate trends of treasury bond futures contracts [14][16][19][22]. - **Exchange Rates**: The report displays the historical trends of the central parity rate of the US dollar against the RMB, the euro against the RMB, forward exchange rates, the US dollar index, and exchange rates between major currencies [24][25][26][28][30].

Core Viewpoint - Nvidia's stock price has declined by 9.1% since reaching an all-time high on October 29, 2022, raising concerns about the sustainability of investments in the AI industry and Nvidia's market dominance [1] Group 1: Stock Performance - Nvidia's stock price has dropped significantly, with a cumulative decline of 9.1% since its peak, underperforming compared to the S&P 500 index [1] - The company's market capitalization has evaporated by approximately $460 billion (around 3.2 trillion RMB) in a few months, reducing its three-year stock price increase to nearly 1200% [1][5] Group 2: Competitive Landscape - Nvidia holds over 90% market share in the AI accelerator sector, but faces increasing competition from traditional rivals like AMD and new entrants such as Alphabet and Amazon [1][6] - AMD is projected to see a 60% growth in data center revenue by 2026, reaching nearly $26 billion, as major clients seek to develop their own chips to avoid high costs associated with Nvidia's products [6] Group 3: Profitability and Valuation - Nvidia's gross margin is expected to remain in the mid-70% range for fiscal years 2024 and 2025, but is projected to decline in fiscal year 2026 due to rising costs from the Blackwell chip series [7] - Analysts express concerns that any signs of weakness in Nvidia's pricing strategy could negatively impact its profit margins, which are critical indicators of profitability [7] - Some analysts believe that the current valuation of Nvidia suggests an end to the industry cycle, presenting a potential investment opportunity, contrasting with previous market peaks [7]

Core Viewpoint - Nvidia's stock price has dropped 9.1% since reaching an all-time high on October 29, 2022, raising concerns about the sustainability of AI investments and Nvidia's market dominance [1] Group 1: Stock Performance - Nvidia's stock price has seen a significant increase of over 1300% since the end of 2022, with its market capitalization surpassing $5 trillion, but has since lost approximately $460 billion in value [1] - The company's stock performance has lagged behind the S&P 500 index, indicating growing investor concerns [1] Group 2: Competitive Landscape - Nvidia holds over 90% market share in the AI accelerator sector, but competitors like AMD are gaining traction with large data center orders from companies such as OpenAI and Oracle [2][3] - Major tech companies including Alphabet, Amazon, Meta, and Microsoft are developing their own chips to avoid the high costs associated with Nvidia's products, which could impact Nvidia's revenue as these companies account for over 40% of its income [3] Group 3: Profitability and Valuation - Nvidia's gross margin is projected to remain in the mid-70% range for fiscal years 2024 and 2025, but is expected to decline to 71.2% in fiscal year 2026 due to rising costs from the Blackwell chip series [4] - Analysts express concerns that any signs of weakness in Nvidia's pricing strategy could negatively impact its profit margins, prompting increased scrutiny from investors [4] - Some analysts believe that the current valuation of Nvidia suggests an end to the industry cycle, presenting a potential investment opportunity, contrasting with previous market peaks [4]

Group 1 - The world's first household robot, Neo, developed by 1X Technology and backed by OpenAI, is now available for pre-order at a price of $20,000 (approximately 145,000 RMB) [2] - Neo can operate for up to 4 hours on a single charge, stands 1.68 meters tall, weighs 30 kg, and is equipped with a camera for remote viewing [2] - The robot can be controlled via a mobile app or voice commands and is programmable to perform various household tasks such as watering plants, cleaning the dishwasher, and organizing rooms [2] Group 2 - The U.S. Federal Reserve announced a 25 basis point interest rate cut, lowering the federal funds rate to a range of 3.75% to 4.00%, marking the fifth rate cut since September 2024 [19] - This decision aligns with market expectations and is aimed at mitigating risks in the labor market [19] Group 3 - Nvidia has become the first company to reach a market capitalization of $5 trillion, with its stock rising 3% on October 29, 2025 [18] - CEO Jensen Huang revealed that the highly anticipated Blackwell chip is now in full production in Arizona, and preparations are underway for the next-generation Rubin architecture [18]

Core Viewpoint - NVIDIA's stock price surged over 5%, reaching a market capitalization of $5.13 trillion, making it the first company to surpass the $5 trillion mark [3] Group 1: Financial Performance - For the second quarter of fiscal year 2026, NVIDIA reported revenue of $46.743 billion, a year-on-year increase of 56%, slightly exceeding market expectations [7] - The net profit (GAAP) for the same quarter was $26.422 billion, reflecting a year-on-year growth of 59% [7] - Data center revenue was $41.1 billion, also up 56% year-on-year, but slightly below market expectations [7] Group 2: Product Developments - CEO Jensen Huang indicated strong AI demand, projecting that revenue from Blackwell and Rubin architecture chips could exceed $500 billion from 20 million GPUs by 2026, five times the revenue from Hopper architecture chips between 2023 and 2025 [4] - The Rubin chip, which boasts a computing power of 100 PFlops, is set to enter production by next year [5] - NVIDIA announced a $1 billion investment in Nokia to accelerate AI-RAN innovation, facilitating the transition from 5G to 6G [5] - The company introduced the NVIDIA BlueField-4 data processor, which will support AI factory operating systems and is part of the Rubin architecture products scheduled for release in 2026 [6] Group 3: Market Context - The surge in stock prices for NVIDIA, Microsoft, and Apple reflects the ongoing global AI wave, with Apple reaching a market cap of $4 trillion and Microsoft at $4.04 trillion [7] - There is ongoing debate in the market regarding the potential bubble in AI stocks, with differing opinions from investment leaders [7]

Core Viewpoint - NVIDIA's stock price surged over 5% on October 29, 2023, reaching a market capitalization of $5.13 trillion, making it the first company in history to surpass a $5 trillion market cap [1] Company Developments - NVIDIA's CEO Jensen Huang indicated strong demand for AI, projecting that revenue from the Blackwell and Rubin architecture chips could exceed $500 billion from 20 million GPUs by 2026, which is five times the revenue expected from the Hopper architecture chips between 2023 and 2025 [2] - Huang showcased the next-generation Rubin superchip, which boasts a computing power of 100 PFlops, 100 times that of NVIDIA's first AI-specific computer, DGX-1, with production expected to begin by next year [3] - NVIDIA announced a $1 billion investment in Nokia to accelerate AI-RAN innovation, facilitating the transition from 5G to 6G, and introduced the Arc Aerial RAN Computer to support next-generation AI-native mobile networks [3] - In quantum computing, NVIDIA launched NVQLink, enabling hybrid simulation between QPUs and GPU supercomputers, with support from 17 different quantum computing companies [3] - NVIDIA introduced the NVIDIA BlueField-4 data processor, which will support AI factory operating systems and is part of the Rubin architecture products set to launch in 2026 [4] Financial Performance - For the second quarter of fiscal year 2026 ending July 27, 2025, NVIDIA reported revenue of $46.743 billion, a 56% year-over-year increase, slightly exceeding market expectations, with a net profit of $26.422 billion, up 59% year-over-year [5] - NVIDIA's data center revenue reached $41.1 billion, also a 56% year-over-year increase, but slightly below market expectations [5] Market Context - On October 28, 2023, NVIDIA, Microsoft, and Apple briefly entered the "4 trillion club," with Apple's market cap at $3.99 trillion and Microsoft's at $4.03 trillion, while on October 29, Apple's market cap rose to $4 trillion and Microsoft's to $4.04 trillion [5] - The surge in market capitalization among tech giants is driven by the ongoing global AI wave, although there are ongoing discussions about the potential for an AI bubble [5]

Group 1 - TSMC's stock price increased over 2.3% to $279 before market opening, with expectations of reaching new highs after opening [1] - The foundry price for TSMC's third-generation 3nm process (N3P) is rumored to have increased by approximately 20% compared to the previous N3E process, while the price for the upcoming 2nm process is expected to rise by 50% [1] - TSMC has secured 15 customers for its 2nm process, with 10 of them focused on HPC applications and the remaining on mobile chip clients [1] Group 2 - Citigroup's report indicates that TSMC is likely to remain a key foundry partner for both NVIDIA and Intel following their collaboration [1] - NVIDIA confirmed in August that TSMC is producing six new chips for its next-generation Rubin architecture [1] - Analysts at Citigroup predict that TSMC's revenue from NVIDIA will grow by 50% and from Intel by 20% by 2026 [1]

Core Insights - The AI computing infrastructure is experiencing a dual resonance of supply and demand, with the liquid cooling server industry poised for a significant breakthrough [1][2] - Nvidia's new Rubin architecture chips have completed tape-out and are set for mass production next year, with global data center infrastructure capital expenditure expected to reach $3-4 trillion over the next five years [2] - The competitiveness of the domestic AI industry chain is continuously improving, exemplified by Cambrian's approved fundraising of 3.985 billion yuan for large model chip and software platform development, with a staggering 4347% year-on-year revenue increase in the first half of the year [1][2] Industry Summary - Overseas computing demand has exceeded expectations, accelerating the maturation of the domestic ecosystem [2] - Oracle's latest financial report indicates a projected 77% surge in cloud infrastructure revenue, with unconfirmed performance obligations skyrocketing to $455 billion, including a $300 billion contract with OpenAI [2] - The upgrade in cooling demand driven by enhanced computing density necessitates liquid cooling technology, which is becoming essential due to the advanced process of Rubin chips [2] - Major cloud providers are expected to significantly boost liquid cooling server demand through substantial collaborations and capital investments [2] Company Insights - Cambrian's fundraising approval and its remarkable revenue growth highlight the potential of domestic AI companies [2] - Shenghong Technology has also received approval for a 1.9 billion yuan fundraising aimed at overseas AI-related production capacity [2] - Industry leaders are accelerating the integration of domestic computing clusters and ecosystems through the development of a series of chips and open platforms [2] Investment Perspective - The sector shows strong AI beta resonance across established overseas companies, companies still validating overseas chains, and purely domestic companies [3] - The power generation sector remains a logical choice for simultaneous volume and profit growth, with recommendations for companies like Keta Power [3] - Other recommended companies include AIDC leasing target Hongjing Technology, and those benefiting from power upgrades such as Yingweike and Shenling Environment [3]

Investment Rating - The report maintains a "Buy" rating for the power equipment sector [7][18]. Core Insights - The demand for overseas computing power has exceeded expectations, leading to a significant acceleration in the domestic ecosystem [5][6]. - The AI computing infrastructure is experiencing a dual resonance of supply and demand, with the liquid cooling server industry poised for a clear breakout point [15][16]. - Major cloud service providers are expected to invest heavily in liquid cooling technology due to the advanced process of the new generation of chips [5][15]. - The domestic AI industry chain is becoming increasingly competitive, with significant fundraising efforts by leading companies to enhance their capabilities [6][16]. Summary by Sections Investment Viewpoints - The report highlights strong AI beta resonance across various companies, from established overseas firms to domestic players [17]. - The power generation sector is identified as a logical area for growth, with specific recommendations for companies such as KOTAI Power and AIDC leasing firm Hongjing Technology [7][17]. Industry Dynamics - The report notes that the global capital expenditure for data center infrastructure is projected to reach $3-4 trillion over the next five years [15]. - Oracle's latest financial report anticipates a 77% surge in cloud infrastructure revenue, indicating robust market demand [5][15]. - The report also discusses the recent approval of large-scale fundraising by domestic AI companies, which is expected to enhance their competitive edge [6][16]. Key Companies and Earnings Forecast - The report provides a detailed earnings forecast for several companies in the power equipment sector, including: - KOTAI Power (Buy) - Yingweike (Buy) - Macromit (Buy) - Shunling Environment (Buy) - Hewei Electric (Buy) [10][20][19].

Core Viewpoint - Nvidia's Q2 FY2026 earnings report shows strong revenue growth but raises concerns about future growth potential due to lower-than-expected data center revenue [1][3]. Financial Performance - Nvidia reported Q2 revenue of $46.743 billion, a 56% year-over-year increase, slightly exceeding market expectations [1]. - Net profit for the second quarter was $26.422 billion, up 59% year-over-year, with a gross margin of 72.4% [1]. - Data center revenue reached $41.1 billion, also a 56% year-over-year increase, but fell short of market expectations [3]. Business Segments - Gaming and AI PC revenue was $4.3 billion, a 49% year-over-year increase [3]. - Professional visualization revenue was $601 million, up 32% year-over-year [3]. - Automotive and robotics revenue was $586 million, showing a 69% year-over-year growth [3]. Product Development - The Blackwell architecture chips are in full production, with significant demand noted by the CEO [3][4]. - The RTX Pro server is also in full production, with nearly 90 companies adopting it for real-time simulation and digital twin applications [4]. - Nvidia anticipates over $20 billion in sovereign AI revenue this year, more than doubling from the previous year [4]. Market Outlook - Nvidia's CFO indicated that AI infrastructure investments will continue to grow, driven by the need for more training and inference computing [4]. - Capital expenditures in data center infrastructure are expected to reach $600 billion this year, nearly doubling over two years [4]. - Nvidia aims to capture a $3 trillion to $4 trillion opportunity in AI infrastructure over the next five years [5]. Networking Solutions - Nvidia's networking business generated $730 million in revenue, with significant growth in InfiniBand revenue [6]. - The company emphasizes the importance of network connectivity for enhancing performance and throughput [6]. Future Guidance - For Q3, Nvidia projects revenue of $54 billion, with a gross margin of 73.3% [6].