Investment Rating - The report indicates a positive outlook for the AI computing industry, suggesting an "Overweight" rating for the sector [3]. Core Insights - NVIDIA has detailed its AI computing technology roadmap at the Washington GTC, enhancing confidence in its execution. The roadmap includes the preview of the next-generation Vera Rubin architecture and emphasizes local manufacturing progress in the U.S. [3] - The Blackwell platform has shipped approximately 6 million GPUs to date, with expectations of 20 million GPUs shipped from Blackwell and Rubin combined by CY25-26, generating over $500 billion in revenue, which is five times the lifetime revenue of the Hopper chip [3][5]. - The report highlights the differentiation of computing products into Context and Generation GPUs, with Context GPUs (CPX) optimized for compute-intensive Prefill stages, aiming for higher system economics [3][4]. Summary by Sections AI Computing Technology Roadmap - NVIDIA's roadmap shows a clear path for the development of AI computing products, with significant advancements in GPU architecture and interconnect technology [3][6]. - The NVLink technology is set to evolve to 400G SerDes channel rates, surpassing standard Ethernet capabilities, indicating a strong demand for high-speed interconnects as AI cluster scales grow [3][13]. Hardware Design Innovations - The Vera Rubin platform aims for complete cable-free connections within trays, enhancing deployment ease and reliability while optimizing space for other components [3][19]. - The report suggests a focus on PCB and connector ASP inflation logic, indicating potential growth in related component manufacturers [3][21]. Investment Opportunities - The report recommends monitoring companies involved in PCB production, connectors, and liquid cooling solutions, including Shenghong Technology, Lixun Precision, and BYD Electronics, as they stand to benefit from the advancements in AI computing infrastructure [3][21].

Core Viewpoint - Nvidia has transformed from a leading chip manufacturer to a full-stack AI infrastructure leader, with a 50% stock price increase in three months, driven by strong product offerings and robust financial performance [1][2][9]. Financial Performance - Nvidia maintains a gross margin of over 75% and expects Q2 revenue to reach $45 billion, exceeding market expectations [1][9]. - The company has a free cash flow margin exceeding 60%, indicating strong operational efficiency [1][14]. Product Roadmap - The upcoming GB300 series (Blackwell Ultra) is expected to enhance inference throughput and memory utilization by 50% [4]. - By Q4 2025, the NVL72 will achieve scale in large data centers, becoming a cornerstone for Nvidia's high-margin data center inference workloads, which currently account for over 70% of its data center business [4][9]. - The Vera Rubin architecture, set to launch in H2 2026, will offer over three times the inference computing capability compared to GB300, while maintaining backward compatibility [4][5]. - The Rubin Ultra design, expected by 2027, aims to deliver up to 15 exaFLOPS of FP4 throughput, significantly enhancing Nvidia's position in AI inference cloud [5][9]. Market Position and Competitive Landscape - Nvidia's structural advantages, including dominant platform economics and a deep ecosystem, position it as a core holding in AI infrastructure [2][10]. - The long-term potential market for AI is projected to reach $1 trillion, with infrastructure needs estimated at $300 billion to $400 billion [10][12]. - Despite competitive pressures from AMD and other custom chip developers, Nvidia's established software stack (CUDA, NeMo) and supply chain integration provide a buffer against market share erosion [12][17]. Valuation Metrics - Nvidia's current P/E ratio stands at 54, with a forward P/E of 40, indicating a premium valuation compared to industry averages [12][14]. - The company's PEG ratio is 0.68 (GAAP) and 1.37 (non-GAAP), suggesting that its valuation is at least partially supported by growth [14]. - Nvidia's expected EV/Sales ratio is 21, and EV/EBIT ratio is 34, reflecting a significant premium over industry standards, which reinforces its growth assumptions [14]. Strategic Outlook - Nvidia's roadmap for the next three years includes the launch of Blackwell GB300 in 2025, Vera Rubin in 2026, and Rubin Ultra in 2027, ensuring continued product leadership and predictable profitability [9][17]. - The company plans to invest over $10 billion in next-generation AI research and development, indicating a commitment to maintaining its competitive edge [12][15].

Group 1 - Nvidia and HPE are collaborating with the Leibniz Supercomputing Centre in Germany to build a new supercomputer named "Blue Lion" [1] - The "Blue Lion" supercomputer will utilize next-generation HPE Cray technology and be equipped with Nvidia GPUs, featuring the Vera Rubin architecture [1] - The computational power of "Blue Lion" is expected to be approximately 30 times greater than the current LRZ high-performance computer, SuperMUC-NG [1] - The supercomputer is set to support collaborative research projects across Europe and is scheduled to be operational by early 2027 [1] Group 2 - Nvidia has launched the "cBottle" AI model, part of the Earth-2 platform, designed to simulate global climate at kilometer resolution [2] - The cBottle model can generate realistic atmospheric states and adjust based on various input conditions, providing a new method for understanding complex natural systems [2] - Predictions using cBottle can be thousands of times faster than traditional numerical models, with higher energy efficiency without compromising accuracy [2] - Research institutions, including MPI-M and Ai2, are exploring the use of cBottle to transform Earth observation data and high-resolution climate simulations into interactive AI systems [2]