Investment Rating - The investment rating for the company is "Buy" [2][19]. Core Views - The report highlights that Blackwell deployment is progressing smoothly, while there are uncertainties regarding business in China. The management has indicated that some Chinese customers have received export licenses from the U.S. government, but NVIDIA did not deliver H20 products in FY2Q26. Excluding revenue from China, the management's guidance for FY3Q26 revenue is a median of $54 billion, with a gross margin median of 73.5% [6][11]. - The report also notes the release of Spectrum XGS, which is expected to enhance the optimization capabilities of data center networks and could generate annualized revenue of $10 billion. The Rubin series of new chips is in the foundry stage and is expected to launch in 2H26, with significant upgrades over Blackwell [6][10]. - The target price for NVIDIA has been raised to $204, corresponding to a 33x FY27E price-to-earnings ratio, reflecting adjustments in revenue forecasts for FY2026 and FY2027 [6][11]. Financial Overview - Revenue projections for the company are as follows: - FY2024: $60,922 million - FY2025: $130,497 million - FY2026E: $207,043 million - FY2027E: $269,112 million - FY2028E: $287,367 million - Year-on-year growth rates are projected at 125.9% for FY2024, 114.2% for FY2025, 58.7% for FY2026, 30.0% for FY2027, and 6.8% for FY2028 [5][21]. - Net profit estimates are as follows: - FY2024: $32,312 million - FY2025: $74,265 million - FY2026E: $110,138 million - FY2027E: $152,118 million - FY2028E: $158,785 million - Earnings per share (EPS) projections are: - FY2024: $1.30 - FY2025: $2.99 - FY2026E: $4.44 - FY2027E: $6.19 - FY2028E: $6.46 [5][21]. Market Performance - The stock price closed at $181.60 with a target price of $204.00, indicating a potential upside of 12.3% [19][20]. - The company has shown a year-to-date price change of 34.16% and has a market capitalization of $4,396,148 million [4][21]. Product Strategy - The report discusses NVIDIA's "dumbbell strategy," focusing on developing both "highly standardized" and "highly open" products. This includes the Blackwell GB200/300 NVL72 cabinet products and the NVLink Fusion and Spectrum-XGS Ethernet connection systems, which aim to enhance compatibility with various accelerators and improve market competitiveness [9][10].

Group 1: Nvidia - Blackwell Ultra deployment is progressing smoothly, but uncertainties remain regarding exports to China. FY2Q26 revenue reached $46.7 billion with a Non-GAAP gross margin of 72.7%, exceeding previous guidance [1] - Management has guided a median revenue of $54 billion for FY3Q26, with a median gross margin of 73.5%. If export conditions allow, an additional $2-5 billion in revenue could be generated [1] - The launch of Spectrum XGS and the progress of the Rubin series are in line with expectations, although the performance improvement of Rubin over Blackwell remains unclear [2] Group 2: Ctrip Group - Ctrip's Q2 performance exceeded expectations, with hotel business growth surpassing forecasts and market share continuing to rise. The company is well-positioned in the current competitive environment [3] - The target price has been adjusted to HKD 653 based on a 20x 2026 P/E ratio, maintaining a buy rating [3] Group 3: Meituan - Meituan's Q2 revenue grew by 12% year-on-year, but adjusted net profit fell by 89% due to irrational competition in the industry [6] - The company expects intensified competition in the third quarter, leading to a projected loss exceeding 15 billion yuan [6][7] Group 4: China National Heavy Duty Truck Group - The company reported a 4.2% year-on-year increase in revenue for the first half of 2025, with net profit rising by 4.0%, aligning with market expectations [8] - The target price is set at HKD 26.45, reflecting a 9.9x P/E ratio for 2025, with a focus on structural recovery in heavy truck sales [8] Group 5: China Innovationpay - The company experienced a 31.7% year-on-year revenue increase in the first half of 2025, with a significant 109.7% growth in energy storage battery revenue [9] - The target price is maintained at HKD 24.77, anticipating a concentrated release of delivery capacity in 2026 [10] Group 6: Innovent Biologics - The company reported a 37% year-on-year increase in product revenue for the first half of 2025, with net profit reaching 830 million yuan [11] - The target price has been raised to HKD 105, reflecting a positive outlook on the company's pipeline and commercialization efforts [12] Group 7: China Life Insurance - The company saw a 6.9% year-on-year increase in net profit for the first half of 2025, although growth has slowed compared to Q1 [18] - The target price has been adjusted to HKD 30, based on a 1.4x P/B ratio for 2025 [19] Group 8: China Pacific Insurance - The company achieved a 32.3% year-on-year increase in net profit for the first half of 2025, with strong performance in both underwriting and investment [20] - The target price has been raised to HKD 24, reflecting improved profitability and competitive advantages [21] Group 9: Yasheng Group - The company reported an 8.3% year-on-year decline in total revenue for the first half of 2025, primarily due to proactive business scale adjustments [22] - The target price is maintained at HKD 3.20, with expectations for recovery as margins stabilize [23] Group 10: XinAo Energy - The company experienced a slight 1% year-on-year decline in core profit for the first half of 2025, meeting market expectations [24] - The target price has been adjusted to HKD 73.66, reflecting a cautious outlook on retail gas demand [24]

Core Viewpoint - Nvidia reported record revenue of $46.743 billion for Q2 of fiscal year 2026, marking a 56% year-over-year increase and a 6% quarter-over-quarter increase, with net profit reaching $26.422 billion, a 59% year-over-year increase and a 41% quarter-over-quarter increase [1] Financial Performance - Revenue for Q2 of fiscal year 2026 was $46.743 billion, up 56% year-over-year and 6% quarter-over-quarter [1] - Net profit was $26.422 billion, reflecting a 59% year-over-year increase and a 41% quarter-over-quarter increase [1] - Adjusted net profit, not in accordance with GAAP, was $25.783 billion, a 52% year-over-year increase and a 30% quarter-over-quarter increase [1] Market Outlook - Nvidia's CEO highlighted the evolution of reasoning AI as a key driver for growth, indicating that the computational demand has increased significantly due to the capabilities of reasoning AI [3] - The company is targeting a market opportunity of $3 trillion to $4 trillion in AI infrastructure over the next few years, with significant capital expenditures from major cloud service providers reaching approximately $600 billion [4][10] Product Development - The Blackwell platform and NVLink 72 system were developed to meet current demands, achieving significant speed and energy efficiency improvements [4] - The Rubin platform is expected to contribute to revenue in the second half of the fiscal year, with a focus on AI applications [2][4] Competitive Landscape - Nvidia's products are widely adopted across major cloud platforms, providing a competitive edge in the AI infrastructure market [7] - The company is addressing the complexities of ASIC development, emphasizing the challenges and the need for comprehensive solutions in AI computing [6][8] China Market Potential - Nvidia estimates a potential market opportunity of $50 billion in China, with expectations of 50% annual growth in the AI sector [13] - The company is actively engaging with the Chinese government to facilitate market entry and product distribution [14] Future Projections - Nvidia anticipates that the data center infrastructure spending will reach $3 trillion to $4 trillion by 2030, driven by the increasing demand for AI capabilities [10][12] - The company is positioned to capture a significant share of this market, with estimates suggesting Nvidia's contribution to a gigawatt-level AI factory could be around $35 billion [11] Technological Advancements - The introduction of the Spectrum XGS product is aimed at enhancing data center interconnectivity, with significant market opportunities identified [16] - The company is focused on improving energy efficiency and performance per watt, which is critical for the profitability of AI factories [12][20]