Summary of Liquid Cooling Industry Conference Call Industry Overview - The domestic liquid cooling market is experiencing significant demand, driven by major players like ByteDance, Alibaba, and Huawei investing heavily in AI, with capital expenditures expected to nearly double, making liquid cooling a core growth driver [1][4] - The overseas liquid cooling demand for NV is projected to reach 50 billion RMB by 2026, while overseas CSP manufacturers' demand is estimated at 30-40 billion RMB, indicating a substantial gap as domestic liquid cooling revenue accounts for less than 10% of the market [5][6] Key Developments - NV launched the Ruby platform, which utilizes a 100% liquid cooling solution. Key changes include the introduction of microchannel cold plates and CPU manifolds, with a preference for high thermal conductivity materials like oxygen-free copper or copper alloys. Welding quality and strength are critical, and flow channel processing must balance precision and cost [1][7] - The design of the manifold under the Ruby architecture has significantly changed, with increased pipe diameters and integrated valves and sensors aimed at enhancing control stability and reducing leakage risks, raising technical requirements for suppliers [1][7] Investment Insights - Investors should focus on the development of domestic supply chains, the core changes associated with the Ruby platform, and the opportunities arising from the trend of mainland OEM expansion, as domestic manufacturers are poised to benefit from the limitations faced by Taiwanese and foreign assets [1][8] - Key recommended stocks include Yingwei and Feilong, with Feilong being a core supplier for Google, NV, and Huawei, expected to contribute over 1 billion RMB in revenue from Google orders this year [9] - Other notable companies include Yinvike, Yinlun, Minshi, and Xingrui Technology, which have advantages in product layout and customer resources, actively pushing for order fulfillment and likely to benefit from market growth [2][10] Market Performance - The liquid cooling sector has performed well recently, particularly driven by the AI computing segment. Since December, the sector's stock prices have stabilized, but new growth opportunities have emerged with the rotation of core sectors, particularly in January, where domestic chains and NV chains have shown marginal catalysts [3]

Summary of the Conference Call on Liquid Cooling Industry and NVIDIA's Ruby Platform Industry Overview - The liquid cooling industry is undergoing significant changes due to advancements in cooling technologies, particularly with NVIDIA's Ruby platform, which aims to innovate heat dissipation methods and reduce reliance on traditional cooling systems [1][3][11]. Key Points on NVIDIA's Ruby Platform - **Integration of Cooling Technologies**: The Ruby platform merges three small boards from the GB300 into a single large board, indicating breakthroughs in insulation or interface materials. It employs high-temperature water cooling technology (45 degrees Celsius inlet) to potentially replace traditional liquid-liquid exchange systems, eliminating the need for chillers [1][2]. - **Production Timeline**: Although NVIDIA announced early production at CES, large-scale production is not expected until November 2026. Currently, only small batch production is underway, with further adjustments anticipated over the next nine months [1][4]. - **Cooling Development Path**: NVIDIA's cooling solutions have evolved from air cooling to full liquid cooling, with a gradual transition aimed at accumulating experience. The Ruby platform does not yet utilize advanced technologies like dual-sided cold plates or microchannel technology due to developmental delays [1][6][7]. - **Performance Metrics**: The new products feature training performance of 35 and inference performance of 50, comparable to AMD's I455, but NVIDIA maintains an overall performance advantage due to ecosystem support [1][9]. Innovations and Challenges - **High-Temperature Water Cooling Impact**: This technology has led to a 6% reduction in data center energy consumption, significantly affecting the industry landscape. However, it has negatively impacted refrigerant and related equipment companies, causing stock prices to drop by approximately 20% [3][11]. - **Cooling System Simplification**: The use of 45-degree water simplifies the cooling system by eliminating the need for traditional chillers, thus reducing complexity and maintenance costs. This method is effective in non-extreme environments [14][15]. - **Future Improvements**: There is potential for further enhancements in liquid cooling methods, particularly through the adoption of microchannel technology, which could significantly improve cooling efficiency [12][24]. Market Dynamics and Competitive Landscape - **Competitive Pressures**: NVIDIA faces competition from companies like AMD, Google, Cambricon, and Huawei, necessitating a rapid release schedule despite some technologies not being fully mature [1][9]. - **Challenges in Heat Dissipation**: The complexity of heat dissipation, especially with technologies like HBM and optical modules, remains a significant challenge, as cooling technologies have not kept pace with rapid advancements in chip technology [20][21]. Conclusion - The Ruby platform represents a significant step forward in liquid cooling technology, with its innovative approaches and potential market impact. However, challenges remain in production timelines, competitive pressures, and the need for ongoing technological advancements in cooling solutions [1][3][11].