Core Viewpoint - The A-share market has rebounded after a two-month consolidation, with the AI computing power industry chain experiencing significant growth, particularly in liquid cooling technology, which is expected to see substantial market expansion by 2026 [2][14]. Group 1: AI Computing Power and Liquid Cooling Technology - The stock price of CPO leader Xinyi Sheng reached a historical high of 466.66 yuan, marking a tenfold increase from its lowest price of 46.56 yuan on April 9 [2]. - Liquid cooling technology is becoming a trend in the cooling sector due to its advantages over traditional air cooling, including lower energy consumption and noise, as well as improved cooling efficiency [3][14]. - Google’s TPU v7 chip has a power consumption of 980W, necessitating the use of liquid cooling systems, which will increase the value of these systems [3][7]. Group 2: Market Growth and Projections - The liquid cooling market is projected to reach a scale of 24-29 billion USD by 2026, driven by the expected shipment of 2.2-2.3 million Google TPU v7 chips [7]. - The Chinese liquid cooling server market is expected to grow to 2.37 billion USD in 2024, a 67% increase from 2023, with a compound annual growth rate of 47.6% from 2023 to 2028 [14]. - The penetration rate of liquid cooling in servers is currently at 5%, indicating significant growth potential in the coming years [14]. Group 3: Company Performance and Stock Insights - A-share liquid cooling concept stocks have shown strong performance, with companies like Hongfuhuan and Yidong Electronics seeing over 40% growth in the last three months [16]. - Hongfuhuan focuses on liquid cooling products for networking and servers, having established partnerships with major domestic and international clients [16]. - Yidong Electronics has a strong integrated advantage in the liquid cooling sector, having achieved mass production of AI chip cooling components [16].

Core Viewpoint - Lens Technology (06613) has seen a stock increase of over 3%, currently at 25.7 HKD, with a trading volume of 52.058 million HKD, following the announcement of a proposed acquisition of 100% equity in Peimei Gao International, which holds a 95.1164% stake in Yuan Shi Technology [1] Company Summary - Lens Technology has signed a letter of intent with an independent third party to acquire Peimei Gao International, which is involved in the production and sales of server cabinets and liquid cooling modules [1] - The acquisition is expected to be completed next year and will help Lens Technology enter the NVIDIA AI server supply chain, significantly boosting its AI server business scale [1] - Credit Lyonnais has reiterated a "outperform" rating for Lens Technology, maintaining a target price of 38 HKD [1] Industry Summary - Yongxing Securities believes that liquid cooling is likely to become a trend in the industry due to increasing chip power consumption, with the TDP of GB300 expected to rise to 1400W and NVIDIA's next-generation Rubin Ultra GPU potentially reaching 2300W [1] - According to ASHRAE recommendations, liquid cooling technology is advised when chip TDP exceeds 300W and cabinet power density exceeds 40kW [1] - The growing energy consumption requirements in data centers are also driving the development of the liquid cooling industry [1]

Core Insights - The rapid growth of AI applications like ChatGPT and Claude is driving an exponential increase in power demand for global AI data centers, pushing them towards critical power limits [1] - The power consumption of AI data centers is shifting from traditional levels of 20-30 kW per rack to levels reaching 500 kW and even 1 MW [1][2] - NVIDIA has announced the formation of an 800V HVDC power supply alliance aimed at developing next-generation AI data centers capable of supporting 1 MW per rack by 2027 [4] Group 1: Power Demand and Infrastructure - AI workloads are causing data center power demands to surge, with traditional 54V power systems becoming inadequate for modern AI factories that require megawatt-level power [2] - The transition to 800V HVDC systems is seen as essential to reduce energy losses and improve overall efficiency in data centers [1][3] - The current reliance on 54V systems is leading to physical limitations in space and efficiency, necessitating a shift to higher voltage systems [2][3] Group 2: Technological Developments - The 800V HVDC architecture is expected to enhance end-to-end energy efficiency by up to 5% and significantly reduce maintenance costs by up to 70% [5] - NVIDIA's collaboration with partners across the energy ecosystem aims to overcome previous barriers to the widespread adoption of HVDC technology in data centers [4] - Domestic companies like InnoSilicon and Changdian Technology are also advancing their technologies to align with the 800V HVDC trend, indicating a competitive landscape [6][7] Group 3: Semiconductor Innovations - The global supply of Gallium Nitride (GaN) is becoming increasingly strained, with companies like InnoSilicon positioned to leverage this scarcity in the context of NVIDIA's supply chain [9] - GaN devices offer superior performance in high-voltage applications compared to traditional silicon-based semiconductors, making them ideal for the evolving demands of AI data centers [11][12] - The integration of GaN technology is expected to significantly enhance power density and efficiency in the new 800V HVDC systems [12]

Core Viewpoint - TSMC's CoPoS packaging technology mass production timeline is delayed from 2027 to 2029-2030 due to technical challenges, which may influence NVIDIA's plans for its Rubin Ultra GPU and shift focus to multi-chip module architecture [1] Group 1: TSMC's CoPoS Technology - TSMC's CoPoS (chip-on-panel-on-substrate) technology aims to enhance area utilization through larger panel sizes (e.g., 310x310mm) to meet AI GPU demands from clients like NVIDIA [1] - The delay in CoPoS mass production is attributed to immaturity in technology, particularly in managing panel and wafer discrepancies, larger area warpage control, and additional redistribution layers (RDL) [1] Group 2: Impact on AI Industry - Nomura's analysis suggests that TSMC may redirect its 2026 chip backend capital expenditures towards other technologies such as WMCM and SoIC, with CoWoS capacity allocation becoming a critical monitoring point [1] - The postponement of CoPoS could lead NVIDIA to adopt a multi-chip module architecture similar to Amazon's Trainium 2 design for its 2027 product launch [1]

Core Viewpoint - Nomura indicates that TSMC's CoPoS packaging technology mass production timeline may be delayed from the original plan of 2027 to 2029-2030, potentially forcing NVIDIA to shift its chip design strategy for the Rubin Ultra GPU to an MCM architecture to avoid limitations of single-module packaging [2][3][4]. Group 1: TSMC's CoPoS Technology Delay - TSMC's CoPoS (chip-on-panel-on-substrate) technology aims to enhance area utilization through larger panel sizes (e.g., 310x310mm) to meet AI GPU demands [4]. - The delay in CoPoS mass production is attributed to technical challenges, particularly in managing panel and wafer discrepancies, warpage control, and additional redistribution layers (RDL) [4][5]. - The expected mass production timeline has shifted from 2027 to potentially late 2029 [4][5]. Group 2: Impact on NVIDIA's Product Strategy - The delay in CoPoS may compel NVIDIA to adopt an MCM architecture for the Rubin Ultra GPU, distributing four Rubin GPUs across two modules connected via a substrate [5][6]. - This adjustment is similar to Amazon's AWS Trainium 2 design, which utilizes CoWoS-R and MCM to integrate computing chips and HBM on a single substrate [6]. - While this change may help NVIDIA mitigate delays, it could also increase design complexity and costs [6]. Group 3: TSMC's Capital Expenditure Adjustments - TSMC's capital expenditure allocation may shift towards wafer-level multi-chip modules (WMCM) and system-on-chip (SoIC) technologies due to the CoPoS delay [7]. - Nomura maintains its forecast for TSMC's CoWoS capacity, expecting monthly wafer production to reach 70,000 and 90,000-100,000 by the end of 2025 and 2026, respectively [7]. - The report warns that market expectations for WMCM may be overly optimistic, while those for SoIC are more conservative [8].

Core Viewpoint - TSMC's CoPoS packaging technology mass production is likely delayed until 2029-2030, which may force NVIDIA to adjust its chip design strategy towards alternative architectures [1][2][3] Group 1: TSMC's CoPoS Technology Delay - TSMC's CoPoS technology, originally scheduled for mass production in 2027, is now expected to be delayed until the second half of 2029 due to technical challenges [2][3] - Key challenges include managing differences between panels and wafers, controlling warpage over larger areas, and addressing more redistribution layers (RDL) [2] Group 2: Impact on NVIDIA's Product Strategy - NVIDIA's Rubin Ultra GPU, initially requiring up to eight wafer-sized CoWoS-L interconnects, may need to shift to a multi-chip module (MCM) architecture due to the CoPoS delay [3] - This adjustment is similar to Amazon's Trainium 2 design, which utilizes CoWoS-R and MCM to integrate computing chips and HBM on a single substrate [3] Group 3: TSMC's Capital Expenditure Adjustments - TSMC's capital expenditure for the latter half of 2026 may increasingly focus on wafer-level multi-chip modules (WMCM) and system-on-chip (SoIC) technologies due to the CoPoS delay [4][5] - The report maintains forecasts for TSMC's CoWoS capacity, expecting monthly wafer production to reach 70,000 and 90,000-100,000 by the end of 2025 and 2026, respectively [4]

Core Insights - Nvidia is redefining the characteristics and functionalities of future power electronic devices, particularly for AI data centers, by designing a new powertrain architecture [1][4] - The shift towards 800V high voltage direct current (HVDC) data center infrastructure is being supported by various semiconductor suppliers and power system component manufacturers [1][5] Group 1: Nvidia's Influence on Power Electronics - Nvidia's push for AI data centers is creating momentum for Gallium Nitride (GaN) technology, similar to the impact of Silicon Carbide (SiC) during Tesla's rise [2] - Nvidia is collaborating with multiple partners, including Infineon, MPS, Navitas, and others, to transition to 800V HVDC systems [1][4] Group 2: Technical Requirements and Innovations - The new 800V HVDC architecture will necessitate a range of new power devices and semiconductors to meet the demands of AI data centers [5] - Infineon is developing converters to demonstrate the advantages of 800V to lower voltages, focusing on power density and efficiency [6][8] Group 3: Competitive Landscape - Other companies, such as Navitas Semiconductor, are also capitalizing on Nvidia's drive for AI data centers by leveraging their expertise in GaN technology [13] - The competition is intensifying as companies like Infineon and Navitas seek to provide solutions for Nvidia's evolving power infrastructure needs [13][14] Group 4: Market Predictions - Yole Group predicts that GaN will experience faster growth than SiC in the AI data center market, with GaN devices having higher voltage potential [16] - The shift in Nvidia's power infrastructure strategy may render existing open computing projects obsolete, leading to a fragmented market [15]

Core Insights - The GTC event highlighted NVIDIA's advancements in AI and GPU technology, particularly the introduction of the Blackwell architecture and its Ultra variant, which promises significant performance improvements over previous models [1][3][5] - NVIDIA's CEO, Jensen Huang, emphasized the rapid evolution of AI technology and the increasing demand for high-performance computing in data centers, projecting that capital expenditures in this sector could exceed $1 trillion by 2028 [1][42][43] Blackwell Architecture - NVIDIA has announced that the four major cloud providers have purchased 3.6 million Blackwell chips this year, indicating strong demand [1] - The Blackwell Ultra platform features up to 288 GB of HBM3e memory and offers 1.5 times the FP4 computing power compared to the previous H100 architecture, significantly enhancing AI inference speed [3][4][5] - The Blackwell Ultra GPU (GB300) is designed to meet the needs of extended inference time, providing 20 petaflops of AI performance with increased memory capacity [3][4] Future Developments - NVIDIA plans to launch the Vera Rubin architecture in 2026, which will include a custom CPU and GPU, promising substantial performance improvements in AI training and inference [7][8][11] - The Rubin Ultra, set for release in 2027, will feature a configuration capable of delivering 15 exaflops of FP4 inference performance, significantly surpassing the capabilities of the Blackwell Ultra [12][81] Networking Innovations - NVIDIA is advancing its networking capabilities with the introduction of co-packaged optics (CPO) technology, which aims to reduce power consumption and improve efficiency in data center networks [14][17][21] - The Quantum-X and Spectrum-X switches, expected to launch in 2025 and 2026 respectively, will utilize CPO to enhance bandwidth and reduce operational costs in AI clusters [89][90] Market Context - Major companies like OpenAI and Meta are investing heavily in NVIDIA's technology, with OpenAI reportedly spending $100 billion on infrastructure that could house up to 400,000 NVIDIA AI chips [30] - Despite the technological advancements, NVIDIA's stock has faced volatility, with a notable decline following the GTC event, raising questions about the sustainability of its market dominance [31][32]