Core Insights - The report from GF Securities highlights that the demand for single-node computing density, bandwidth, and low-latency interconnects is rising due to AI training and inference, making the enhancement of single-machine performance a priority for data center investments [1] - The rapid development of Scale up networks is directly driving the demand for Scale up switches, switch chips, interconnect chips, PCBs, and ODMs [1] - The transition from "AI's iPhone moment" to "AI's fission moment" and then to "AI's offensive moment" suggests a focus on core beneficiaries within the industry chain [1] Industry Trends - Scale up has become the core trend for computing power expansion in the AI era, with three main interconnects surrounding GPUs: business network interconnect, Scale out network interconnect, and Scale up network interconnect [1] - Scale up enhances computing density and data access efficiency, with GPU interconnects first focusing on Scale up before Scale out, indicating its importance for future AI scalability [1] Protocol Development - The Scale up protocol is diversifying, with various manufacturers launching self-developed or deeply customized switch chips and interconnect protocols, including PCIe, NVLINK, UALINK, and SUE [2] - There are two main paths for Scale up: high-density single-cabinet GPU solutions and multi-cabinet optical interconnects, with NVIDIA and Google being key representatives in these developments [2] - As GPU interconnects extend beyond single cabinets, optical interconnects are becoming essential for achieving efficient connections, benefiting upstream components like Scale up switches, switch chips, interconnect chips, PCBs, and ODMs [2]