Minsheng Securities: NVIDIA Corporation (NVDA.US) speech shows confidence, US technology stocks rebound significantly.

Minsheng Securities released a research report stating that on September 11, US tech companies saw a significant rebound in the stock market, with the Philadelphia Semiconductor Index rising by 4.90% and NVIDIA Corporation (NVDA.US) rising by 8.15%. On that day, Huang Renxun's speech at the Communacopia Tech conference showed NVIDIA Corporation's strong confidence in computing power demand, while the company announced that the Blackwell product is progressing smoothly and will be shipped in the fourth quarter; at the same time, the slightly higher-than-expected US CPI data in August reduced the possibility of a significant rate cut by the Federal Reserve. Minsheng Securities believes that under the drive of AI, data center related industries are still the main driving force for the growth of PCB and copper interconnect industries. Huang Renxun's speech showed confidence, and the Blackwell product will be shipped in the fourth quarter. Previously, the market was concerned about the uncertainty of the Blackwell shipment timing due to adjustments in the GB200 plan. However, Huang Renxun stated at the Communacopia Tech conference that the company is currently expanding Blackwell's production capacity, with products already in full production and scheduled for shipment in the fourth quarter. Additionally, Huang Renxun also mentioned in his speech: 1) Data centers will transition from general computing to accelerated computing: as Moore's Law gradually loses effectiveness and CPU speed increases slow down, data centers must adopt accelerated computing to improve computing efficiency; 2) The ROI problem of computing power capital expenditure is expected to be solved: accelerated computing can use technologies like Spark to increase processing speed by more than 20 times. Therefore, even if GPU costs double compared to CPU, using accelerated computing can still save ten times the cost, making the return on investment in computing power considerable. Huang Renxun's speech temporarily alleviated market concerns about the timing of Blackwell product shipments while also addressing the issue of return on investment in computing power capital expenditure. It is precisely because accelerated computing can provide customers with significant efficiency improvements that Huang Renxun mentioned the current strong demand for computing power. Higher-than-expected core CPI reduces market expectations for a Fed rate cut. The August CPI data released by the US on September 11 showed that the overall CPI in August was +2.5% year-on-year, as expected, with the previous value at +2.9%. On a month-on-month basis, it was +0.2%, as expected, with the previous value at +0.2%, meeting expectations. The core CPI in August was +3.2% year-on-year, as expected, and +0.3% month-on-month, higher than expectations. Due to rising housing costs, the core CPI in August in the US slightly exceeded expectations, lowering the possibility of a significant Fed rate cut. According to CME Group, the market currently expects a 85% chance of the Fed lowering rates by 25 basis points in September, with a 15% chance of a 50 basis point cut. Investment recommendation: Under the drive of AI, data center related industries are still the main driving force for the growth of PCB and copper interconnect industries. Suggestions include: 1) PCB: PCBs have advantages such as easy installation, maintenance, and low cost, and are still one of the mainstream solutions for cabinet interconnection. It is recommended to focus on Wus Printed Circuit (002463.SZ), Victory Giant Technology (300476.SZ), Shenzhen Kinwong Electronic (603228.SH), etc.; 2) Copper interconnect: High-speed copper cables can achieve low cost, high-speed rate, and low power consumption for accelerated card interconnect solutions in short-distance communication scenarios. With the rapid increase in AI data center penetration rates, it is recommended to focus on Shenzhen Woer Heat-shrinkable Material (002130.SZ), FIT HON TENG Technology (608858.SH), Tongling Jingda Special Magnet Wire (600577.SH), etc. Risk warning: Risks of fluctuations in AI industry demand; risks of changes in industry competition dynamics; risks of product development progress falling short of expectations; risks of macroeconomic and downstream demand recovery falling short of expectations.