2025-10-27 00:31Summary of Conference Call on AI Acceleration and Related Technologies Industry Overview - The conference call focused on the AI industry, particularly the advancements in optical modules, liquid cooling technology, and domestic computing power in China. The discussion highlighted the increasing demand for AI-related hardware and the implications for various companies involved in the supply chain. Key Points and Arguments AI Industry Acceleration - The global AI industry chain is experiencing rapid acceleration, with all segments speeding up deliveries and increasing orders. Google has raised its 2026 TPU demand for the fifth time from 4 million to 4.9 million units, indicating a significant increase in demand for 1.6T optical modules, with estimates ranging from 16 million to 30 million units for 2026 [2][3]. Demand for Optical Modules - Google’s increased TPU demand directly correlates with a rise in the need for 1.6T optical modules. Leading companies in the optical module sector, such as Zhongji Xuchuang and Xinyi Technology, are expected to benefit from this trend [3]. Liquid Cooling Technology - Liquid cooling technology is being rapidly adopted in AI computing. Google’s V7 will fully utilize liquid cooling, while previous versions (V5 and V6) still used air cooling. The collaboration between Invec and Google on a universal CDO liquid cooling solution is noteworthy, as is the push from Meta and OpenAI to implement liquid cooling [4]. Developments in Optical Communication - The optical communication sector is focusing on four main areas: 1. 1.6T optical modules (Zhongji Xuchuang, Xinyi Technology) 2. Optical devices (Changxin Bochuang, Taichen Optics, Changfei Fiber) 3. Optical chips (Yuanjie Technology, Shijia Optics) 4. OCS switches (Tengjing Technology, Guangku Technology) These components are crucial to Google's supply chain [5]. Domestic Computing Power in China - Positive signals are emerging in China's computing power sector, with a major company initiating a large tender project. Additionally, favorable outcomes from US-China trade negotiations may further promote domestic computing power development, presenting opportunities for related companies [6][8]. Server Power Supply Market - The server power supply market is experiencing rapid growth, with Eulantong being a key player in Google's supply chain. Concerns over rising storage prices and potential shortages may lead to supply-demand imbalances, highlighting market opportunities [7]. Trends in Domestic AI Investment - Domestic AI investment is expected to accelerate significantly in 2026, with companies like Cambricon and Haiguang gradually shipping domestic computing cards. The anticipated increase in domestic AI investment may surpass overseas levels, positively impacting the domestic AI supply chain [8][10]. Supernode Technology - Supernode technology is projected to see explosive growth in 2026, with companies like Cambricon and ZTE accelerating their efforts in this area. Opportunities include 51.2T switching chips, machine manufacturing, 800G optical module upgrades, liquid cooling technology, copper connections, and high-power server power supplies [11]. AIDC Sector Development - The AIDC (Artificial Intelligence Data Center) sector's growth is contingent on improved chip supply. Although tender progress is accelerating, the overall pace remains slow. Positive developments in US-China trade negotiations are expected to enhance the AIDC sector's fundamentals, including data center construction and power supply equipment [12]. Investment Opportunities - Current market conditions favor investments in three main areas: upgrading optical modules to 800G, liquid cooling technology, and domestic computing power. The acceleration of capital expenditures by major players globally presents significant investment opportunities. Any stock price corrections may provide favorable entry points for investors [13]. Additional Important Insights - The conference highlighted the interconnectedness of various technologies and companies within the AI ecosystem, emphasizing the importance of collaboration and innovation in driving growth across the industry. The focus on domestic capabilities in China reflects a strategic shift towards self-sufficiency in AI technologies.