Nvidia(NVDA) -·2024-12-25 13:49Industry and Company Overview * Industry: High-performance computing, AI applications, data centers, and semiconductor equipment. * Companies: AWS, Microsoft, Google, Credo, NVIDIA, X.AI, Baidu, and others. Key Points 1. AEC Market Growth: The AEC (Active Electrical Connector) market is expected to grow significantly, with a potential doubling in size from 600-900 million by 2025. This growth is driven by increasing demand from major customers like AWS, Microsoft, and Google. * [doc id='8'] 2. AWS and Microsoft as Major Customers: AWS is the largest customer for AEC, with a projected demand of 2 million units in 2025. Microsoft is also a significant customer, with a steady demand of around 120,000 units per quarter. * [doc id='13'] 3. Google's AEC Demand: Google has a growing demand for AEC, driven by its expansion in AI and TPU chip production. The company is expected to purchase around 300-400 million optical modules in 2025. * [doc id='2'] 4. NVIDIA's Role: NVIDIA's decision to use ACC (Active Copper Cable) instead of AEC in its GPU systems initially limited the demand for AEC. However, as more customers build their own AI networks, the demand for AEC is increasing. * [doc id='13'] 5. Credo's Market Position: Credo is the leading supplier of AEC, with a significant market share. However, new entrants like New易盛 are expected to increase competition and drive price reductions. * [doc id='8'] 6. AEC vs. Optical Modules: AEC is expected to partially replace certain types of optical modules, particularly in the lowest layer of AI networks. However, the overall impact on the optical module market is expected to be limited. * [doc id='9'] 7. Customer Preferences: Customer preferences for AEC vs. optical modules vary. Some customers prefer AEC for its longer reach and lower latency, while others prefer optical modules for their lower cost and better electromagnetic interference resistance. * [doc id='9'] 8. Supply Chain Challenges: The supply chain for AEC is facing challenges due to high demand and limited production capacity. This could potentially limit the growth of the market. * [doc id='16'] Conclusion The AEC market is expected to grow significantly in the coming years, driven by increasing demand from major customers in the high-performance computing and AI industries. However, challenges such as supply chain constraints and competition from new entrants could impact the growth of the market.