Summary of Key Points from Conference Call Records Industry Overview - The conference call primarily discusses the AI and semiconductor industry, focusing on companies like Broadcom and NVIDIA, and their respective products and market performance [1][2][3][4][5][6][7][8][9]. Core Insights and Arguments Broadcom - Broadcom's AI revenue is expected to continue its growth trajectory into FY2026, benefiting from resilient AI demand [1][2]. - The Tomahawk 6 switch chip has begun mass production, supporting AI clusters with a capacity of up to one million cards, reinforcing Broadcom's leadership in the AI networking sector [2][7]. - In Q2 FY25, Broadcom's AI revenue reached $4.4 billion, accounting for 29% of total revenue, with semiconductor business revenue at 52% [7][8]. - Broadcom anticipates a significant increase in AI revenue, projecting a 60% growth rate for FY25 and FY26 [8]. NVIDIA - NVIDIA reported a Q1 FY2026 revenue of $44.1 billion, a 69% year-over-year increase, despite challenges from the H20 product line affecting gross margins [3][4]. - The company expects a median revenue of $45 billion for Q2, with a potential of $53 billion if H20-related losses are excluded [3][4]. - AI demand is driven by four key areas: post-training and data synthesis, real-time inference, sovereign AI, and industrial AI [4][5]. - NVIDIA's Chinese operations are impacted by H20 shipment issues, but there remains significant potential for domestic alternatives to fill the gap [5]. Market Trends - North America's four major cloud providers have revised their capital expenditures upward, projecting a 35.4% year-over-year increase in total capital spending for 2025 [1][9]. - The AI server, switch, and accelerator card iterations are driving demand for high-end PCB materials, with a shift towards lower dielectric constant materials [1][22]. - The light module industry is expected to see significant growth, with 800G demand projected between 32 to 35 million units and 1.6T demand expected to exceed 3 to 4 million units by 2026 [27]. Other Important Insights - The AI Ethernet switch market is anticipated to grow due to the economic and open nature of Ethernet, with Cisco and Arista Networks already achieving mass production [16][17]. - The PCB sector is experiencing a resurgence due to increased demand from AI and automotive electronics, with significant price increases noted in raw materials [20][21]. - The development of customized AI chips is expected to continue, with major players like Google and Amazon ramping up production [15]. - The overall market sentiment is shifting towards a focus on mid-tier companies with strong performance in overseas markets, indicating a potential for significant returns [29]. This summary encapsulates the key points discussed in the conference call, highlighting the performance and outlook of major players in the AI and semiconductor industry, as well as broader market trends and investment opportunities.

1. Report Industry Investment Rating There is no information provided in the report regarding the industry investment rating. 2. Core Viewpoints of the Report - The equity market is expected to continue the pattern of index fluctuations and internal theme rotation, waiting for the progress of the technology industry to drive a new round of upward technology market. The adjustment of credit ratings in the convertible bond market does not cause panic for now, but if large - balance convertible bonds are downgraded, it may trigger market valuation compression and present a good opportunity to increase convertible bond positions. It is recommended to select bonds from three aspects: performance - driven, event - catalyzed, and dividend and defensive [2][3][16]. 3. Summary by Related Catalogs Market Trends (2025/6/3 - 2025/6/6) Stock Market - The equity market oscillated and rose last week. Driven by events such as NVIDIA's record - high FY1Q26 revenue and Broadcom's announcement of the start of Tomahawk 6 switch chip deliveries, the TMT sector performed well. The non - ferrous metals sector also had a high increase due to the rise in gold prices, while the previously strong new consumption and dividend sectors declined relatively. The Shenwan primary industries with the highest increases were communication (+5.27%), non - ferrous metals (+3.74%), electronics (+3.60%), comprehensive (+2.89%), and computer (+2.79%), while those with the lowest performance were household appliances (-1.79%), food and beverage (-1.06%), transportation (-0.54%), and coal (-0.50%) [7][8]. Bond Market - After crossing the end of the month, the capital market was balanced and loose. The news that the central bank would conduct large - scale outright reverse repurchase operations and that treasury bond trading operations were expected to restart in a timely manner was positive for the bond market. However, the global stock market rally and a slight increase in market risk appetite suppressed the bond market. Overall, the bond market oscillated slightly upward. The 10 - year treasury bond yield closed at 1.65% on Friday, down 1.65bp from the previous week [8]. Convertible Bond Market - Most convertible bond issues rose last week. The CSI Convertible Bond Index increased by 1.08% for the whole week, the median price increased by 1.00%, and the arithmetic average parity calculated increased by 2.35%. The overall market conversion premium rate decreased by 1.19% compared with the previous week. In terms of individual bonds, Jinling (football concept), Yitian (computing power concept), Jingyuan (computing power concept), Huati (virtual power plant concept), and Tianyang (financial IT) convertible bonds led the gains, while Zhongqi (lithography machine concept), Jingda (controllable nuclear fusion concept), and Dongshi (driving training) convertible bonds led the losses. The total trading volume of the convertible bond market last week was 256.298 billion yuan, with an average daily trading volume of 64.075 billion yuan, significantly higher than the previous week [8][11][13]. Outlook and Strategies (2025/6/9 - 2025/6/13) - With the suspension of reciprocal tariffs and positive macro - policies supporting economic resilience, the PMI data in May generally improved, and export orders significantly recovered compared to April. However, the changing attitude of Trump means that there is still significant uncertainty in Sino - US trade relations. After excluding the impact of share conversion, the market still has a high demand for convertible bonds due to the low bond market interest rates. The theme rotation in the convertible bond market is obvious. Currently, the adjustment of credit ratings has a limited impact, but if large - balance convertible bonds are downgraded, it may be a good opportunity to increase positions. It is recommended to use the inconsistency of driving factors between the dividend and technology sectors to reduce portfolio volatility and select bonds from three aspects: performance - driven, event - catalyzed, and dividend and defensive [2][3][16]. Valuation Overview - As of June 6, 2025, in the equity - biased convertible bonds, the average conversion premium rates of convertible bonds with parities in the ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 39.71%, 27.63%, 19.2%, 13.2%, 9.11%, and 4.79% respectively, at the 81%/62%, 73%/46%, 68%/42%, 66%/41%, 63%/41%, and 67%/32% percentile values since 2010/2021. The average YTM of debt - biased convertible bonds with parities below 70 yuan was 0.32%, at the 10%/2% percentile values since 2010/2021. The average implied volatility of all convertible bonds was 30.64%, at the 52%/29% percentile values since 2010/2021. The difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks was - 17.23%, at the 13%/18% percentile values since 2010/2021 [17]. Primary Market Tracking - No convertible bonds were issued or listed last week (2025/6/3 - 2025/6/6). As of the announcements on June 6, there were no announcements of convertible bond issuances or listings in the coming week (2025/6/9 - 2025/6/13). Last week, Shenglan Co., Ltd. passed the listing committee review, and there were no new companies approved for registration by the exchange, accepted by the exchange, passed by the general meeting of shareholders, or with board of directors' proposals. Currently, there are 85 convertible bonds to be issued, with a total scale of 131.39 billion yuan, including 10 that have been approved for registration, with a total scale of 15.89 billion yuan, and 5 that have passed the listing committee review, with a total scale of 3.68 billion yuan [26].