Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected performance exceeding the benchmark index by more than 10% [36]. Core Insights - Huawei's new Ascend roadmap was unveiled at the 2025 Connectivity Conference, showcasing significant advancements in supernode capabilities, with the upcoming 950PR architecture expected to achieve 1P FP8/2P FP4 computing power and 2TB/s interconnect bandwidth [2][11]. - The collaboration between NVIDIA and Intel aims to create a new order in data centers, with NVIDIA acquiring a 4% stake in Intel and both companies working on customized data center and PC products [4][14]. - The report highlights the potential acceleration of domestic AI chip shipments in 2026, driven by Huawei's leadership in the domestic computing sector [11][12]. Summary by Sections Industry Trends - Huawei's Ascend AI chip roadmap indicates a significant leap in domestic computing capabilities, with the 950 series expected to surpass NVIDIA's previous flagship in interconnect bandwidth [2][11]. - The Atlas 950 SuperPoD supernode utilizes a hybrid copper-optical architecture, enhancing cost-effectiveness and potentially setting a benchmark for domestic computing cluster design [3][12]. Market Overview - The overall market saw an increase during the week of September 22-26, 2025, with the STAR Market index rising by 6.47% and the ChiNext index by 1.96% [6][15]. - The top-performing sectors included liquid cooling (+7.16%), IoT (+5.95%), and IDC (+1.54%) [15]. Stock Performance - Leading stocks included Cambridge Technology (+18.77%), Inspur Information (+11.86%), and Zhongtian Technology (+9.08%) [15][29]. - Stocks with the largest declines were Bochuang Technology (-14.77%), Changfei Fiber (-14.61%), and Yihua Technology (-8.95%) [15][29]. Companies to Watch - Key companies to monitor include Cambricon, Haiguang Information, and ZTE Corporation in the domestic computing sector, as well as Inspur Information and Ziguang Corporation in the supernode market [15].

Investment Rating - The report recommends attention to domestic AI computing targets, indicating a positive outlook for the industry [6][7]. Core Insights - The report highlights Huawei's AI chip roadmap, with the Ascend 950PR chip set to launch in Q1 2026 and the Ascend 970 in Q4 2028. The Ascend 910C was launched in Q1 2025, followed by the Ascend 950PR and 950DT in 2026, and the Ascend 960 in Q4 2027 [6][7]. - Huawei's Ascend 970 chip will feature a computing power of 4 PFLOPS (FP8) and 8 PFLOPS (FP4), with an interconnect bandwidth of 4 TB/s and HBM memory capacity of 288 GB, which is competitive compared to NVIDIA's Blackwell Ultra GB300 [6][7]. - The Atlas 950 SuperPoD, expected to launch in Q4 2025, will be the world's strongest supernode, with over 300 units deployed by September 2025, serving more than 20 clients [7][8]. - Huawei's strategy includes hardware openness and software open-source initiatives, allowing industry self-development and integration into existing systems [8]. Summary by Sections - **AI Chip Roadmap**: Huawei's roadmap includes the launch of the Ascend 950PR in Q1 2026 and the Ascend 970 in Q4 2028, with significant advancements in chip technology and performance metrics [6][7]. - **Supernode Development**: The Atlas 950 SuperPoD and Atlas 960 SuperPoD will support a large number of Ascend cards, leading in various performance metrics and expected to dominate the market for years [7][8]. - **Open Technology Strategy**: Huawei is committed to an open technology approach, providing access to supernode technology and components for industry partners, fostering innovation and development [8].

Core Viewpoint - Huawei is advancing its AI chip technology with a roadmap that includes the release of several new Ascend chips, aiming to enhance computing power and interconnect bandwidth significantly over the next few years [3][4][5]. Chip Development Roadmap - The Ascend 910C was launched in Q1 2025, followed by the Ascend 950PR and 950DT in Q1 and Q4 of 2026 respectively. The Ascend 960 and 970 are expected in Q4 2027 and Q4 2028 [3][4]. - The Ascend 910C features a computing power of 800 TFLOPS (FP16) and an interconnect bandwidth of 784 GB/s, while the Ascend 950PR and 950DT will achieve 1 PFLOPS (FP8) and 2 PFLOPS (FP4) respectively, with bandwidths of 2 TB/s [4][5]. Technical Specifications - The Ascend 950PR will have a memory capacity of 144 GB and a bandwidth of 4 TB/s, while the Ascend 950DT will have 128 GB and 1.6 TB/s [4]. - The Ascend 960 will double the computing power to 2 PFLOPS (FP8) and 4 PFLOPS (FP4), with an interconnect bandwidth of 2.2 TB/s and a memory capacity of 288 GB [5]. - The Ascend 970 will further enhance performance to 4 PFLOPS (FP8) and 8 PFLOPS (FP4), maintaining a memory capacity of 288 GB but increasing bandwidth to 14.4 TB/s [5]. Competitive Landscape - Compared to NVIDIA's Blackwell Ultra GB300, which has a computing power of 15 PFLOPS (FP4) and a bandwidth of 8 TB/s, Huawei acknowledges a gap in single-chip performance due to U.S. sanctions affecting production capabilities [8]. - Despite this, Huawei emphasizes its strengths in connectivity technology, which it believes will enable it to achieve ultra-node capabilities in AI infrastructure [8]. AI Infrastructure Development - Huawei has deployed over 300 CloudMatrix 384 ultra-nodes, serving more than 20 clients, and plans to launch the Atlas 950 SuperPoD with a computing scale of 8192 cards in Q4 2023 [9]. - The upcoming Atlas 960 SuperPoD, expected in Q4 2027, will have a computing scale of 15488 cards, while the TaiShan950 SuperPoD, set for Q1 2026, will support up to 16 nodes and 48 TB of memory [9]. Industry Collaboration - Huawei expresses a commitment to collaborate with the industry to build a robust foundation for AI computing needs both in China and globally [10].

Core Viewpoint - Computing power is crucial for artificial intelligence and will continue to be a key factor for China's AI development, as stated by Huawei's rotating chairman Xu Zhijun [3]. Group 1: Huawei's Chip Development - Huawei plans to launch the Ascend 950PR chip in Q1 2026, the Ascend 950DT in Q4 2026, the Ascend 960 chip in Q4 2027, and the Ascend 970 chip in Q4 2028 [3]. - The company has introduced the Atlas 900 A3 SuperPoD, with over 300 units deployed, serving more than 20 customers, and will release the Atlas 950 SuperPoD in Q4 2026, supporting 8192 Ascend cards with a computing power of 8 EFLOPS FP8 / 16 EFLOPS FP4 [5]. Group 2: Supernode Infrastructure - Huawei is developing the Atlas 960 SuperPoD, expected to support 15488 Ascend cards with a computing power of 30 EFLOPS FP8 / 60 EFLOPS FP4, planned for Q4 2027 [7]. - The company announced the Atlas 950 SuperCluster and Atlas 960 SuperCluster, with computing power exceeding 500,000 cards and reaching one million cards, respectively [9]. Group 3: General Computing and Open Technology - Huawei revealed the roadmap for the Kunpeng chip, with the Kunpeng 950 chip set to launch in Q4 2026 and the Kunpeng 960 chip in Q1 2028 [9]. - The company introduced the TaiShan950 SuperPoD, the world's first general computing supernode, expected to launch in Q1 2026, which aims to replace various large and small machines as well as Exadata database integrated machines [9]. - Xu Zhijun announced that the supernode technology will be fully open, including the Lingqu 2.0 technology specifications, which encompass foundational, firmware, and operating system reference design specifications [9].