2025-07-14 00:36Summary of Key Points from the Conference Call Industry Overview - The focus is on the Global Semiconductors & Hardware industry, specifically the AI server and edge AI sectors [2][3]. Core Insights and Arguments - Investment Surge: Total investment in upcoming and under-construction data centers has reached approximately US$750 billion, with major contributions from hyperscalers, neoclouds, and sovereign funds. Expected capex growth for major cloud service providers (CSPs) is 46% YoY in 2025 and 6% in 2026, reaching US$386 billion [3][30]. - AI Funding: Primary market AI funding hit a record US$60 billion in 1Q25, largely driven by OpenAI's US$40 billion financing round, representing 53% of all global startup funding [25][30]. - Server Shipments: High-end GPU server shipments are projected to grow over 50% in 2025, while ASIC server shipments are expected to comprise nearly 45% of total AI chip shipments this year [4][37]. - Financial Performance: The AI supply chain remains resilient, with companies like Accton, Gold Circuit, and Wiwynn seeing upward revisions in earnings due to stronger-than-expected demand for ASIC servers [6][38]. Important Developments - Edge AI Innovations: While edge AI technologies are gaining traction, they are still in the early stages. AI glasses shipments surged by triple digits YoY in 1Q25, indicating competitive dynamics in the market [7]. - Key Projects to Monitor: Upcoming developments include monitoring capex guidance from CSPs, progress on mega projects like Stargate, and advancements in TSMC's AP7/AP8 technologies [8][26]. Potential Investment Opportunities - Chroma and Delta: Rated as outperform with price targets of NT$480 and NT$490 respectively, benefiting from the AI wave [11][12]. - NVIDIA: Rated outperform with a price target of US$185, capitalizing on the datacenter opportunity [17]. - Broadcom and Marvell: Broadcom expects a US$60-90 billion serviceable available market (SAM) for AI revenue by FY2027, while Marvell anticipates a 53% CAGR in its data center total addressable market (TAM) from 2023 to 2028 [53][56]. Other Notable Points - Market Dynamics: The AI server market is expected to drive the global server market to nearly US$400 billion by 2026, with a significant increase in the mix of AI servers [35][39]. - Supply Chain Resilience: Despite market volatility, the AI supply chain has shown resilience, with stock performance of key suppliers indicating a recovery trend [6]. This summary encapsulates the critical insights and developments discussed in the conference call, highlighting the robust growth and investment opportunities within the AI server and semiconductor sectors.