Sinolink: NVIDIA Corporation (NVDA.US) B-series chips are fully in production, paying attention to the opportunity of pulling the industry chain.

Sinolink released a research report stating that the demand for AI is strong, and the capital expenditure on AI by the four major cloud vendors in North America continues to grow rapidly. Huang Renxun, CEO of NVIDIA Corporation (NVDA.US), stated in an interview that there is strong demand for Blackwell chips, the company has begun mass production, and shipments are expected to begin in the fourth quarter, with expected revenue contributions of tens of billions of dollars in the fourth quarter. With the mass shipment of NVIDIA Corporation's B series chips, the industry chain is expected to see good opportunities for growth, and core beneficiaries are optimistic. In addition, it is recommended to pay attention to the upcoming launch of Apple Intelligence, which is expected to empower the new iPhone 16 and accelerate the replacement cycle. Continued optimism for consumer electronics innovation/recovery in demand, AI-driven sectors, and industries benefiting from autonomous and controllable technologies. NVIDIA Corporation's B series chips are in full production, with a focus on industry chain growth opportunities. On September 13, Huang Renxun of NVIDIA Corporation stated in an interview that there is strong demand for Blackwell chips, the company has started mass production, with shipments expected to start in the fourth quarter, and is expected to contribute tens of billions of dollars in revenue in the fourth fiscal quarter. Sinolink believes that the demand for AI is strong, and the capital expenditure on AI by the four major cloud vendors in North America continues to grow rapidly. With the mass shipment of NVIDIA Corporation's B series chips, the industry chain is expected to see good opportunities for growth, and core beneficiaries are optimistic. Benefiting from the growth in AI applications, Oracle Corporation's performance in the latest quarter exceeded expectations, and the outlook for cloud revenue is optimistic, with revenue forecasted to reach at least $66 billion in fiscal year 2026. Oracle Corporation's cloud has been successful in generating AI workloads. Benefiting from AI and the stocking of Apple Inc.'s new devices, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR reported sales of 250.9 billion Taiwanese dollars in August, a 33% year-over-year increase. SK Hynix is planning to renovate the M10F semiconductor plant in Icheon, South Korea into a DRAM production line, converting it to produce the fifth generation HBM3E. Once the M10F production line is operational, SK Hynix's HBM monthly production capacity is expected to increase to 150,000 units. With the recovery in industry chain demand, the overall revenue of the electronics industry in the second quarter of 2024 was 838.8 billion, a 37% year-on-year increase, a 15% increase QoQ, and a net profit of 37.9 billion for the parent company, a 75% year-on-year increase, and a 43% increase QoQ. According to SIA data, global semiconductor sales in July 2024 were $51.3 billion, an 18.7% year-on-year increase and a 2.7% increase QoQ. Monthly sales have risen consecutively for four months, with the Americas market showing the strongest growth at 40.1% year-on-year while China's mainland grew by 19.5% year-on-year. It is recommended to pay attention to the upcoming launch of Apple Intelligence in October, which is expected to empower the new iPhone 16 and accelerate the replacement cycle. Sinolink believes that AI empowers consumer electronics and is likely to bring new demand for device replacements, and continues to be optimistic about the AI-driven, consumer electronics innovation/recovery, and autonomous and controllable industries. Segment tracks: 1) Semiconductor manufacturing: Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR reported a 33% year-on-year increase in revenue in August, a 2.4% decrease QoQ. Semiconductor Manufacturing International Corporation's three bases revenue guidance expects a 13-15% increase QoQ. 2) Industrial, automotive, security, consumer electronics: According to Canalys, global PC shipments reached 62.8 million units in Q2 2024, a 3.4% year-on-year increase. Global smartphone shipments in Q2 2024 reached 288 million units, a 12% year-over-year increase. On September 9, Apple Inc. released the iPhone 16 series, all powered by the A18 chip, as the Apple Intelligence system gradually upgrades, helping to drive a new wave of replacement cycles. According to the China Association of Automobile Manufacturers, it is expected that sales of new energy vehicles in August will reach 980,000 units, a 37% year-on-year increase, with a penetration rate of 53%. 3) PCB: Looking at the overall situation of the PCB industry chain, the industry's prosperity continued to recover in the second quarter, but it is worth noting that the PCB manufacturing segment was under significant pressure in June due to limited operation caused by tight power supply in the region of Taiwan, China. 4) Components: In the short term, mainland panel factories will push for production reduction to balance supply and demand, reducing price pressures. According to the Economic Daily, benefiting from the recovery in demand for smartphones and PCs, the traditional peak season is approaching, combined with a significant rise in silver prices, companies like Murata and TDK are preparing to increase prices, with preliminary price hikes on products like multilayer inductors and beads, with increases possibly reaching 20%. 5) IC design: Major storage companies are transitioning to DDR5/HBM, providing development opportunities for A-share basic storage manufacturers. With mainstream storage prices continuing to rise and the inventories of the three major companies being continuously reduced, funds will focus on future high-demand areas such as DDR5 and HBM, accelerating the exit from the basic storage market. Investment recommendations and valuations Sinolink believes that the demand for AI is strong, and the capital expenditure on AI by the four major cloud vendors in North America continues to grow rapidly. With the mass shipment of NVIDIA Corporation's B series chips, the industry chain is expected to see good opportunities for growth, and core beneficiaries are optimistic. It is recommended to pay attention to the upcoming launch of Apple Intelligence in October, which is expected to empower the new iPhone 16 and accelerate the replacement cycle. Continued optimism for consumer electronics innovation/recovery, AI-driven sectors, and industries benefiting from autonomous and controllable technologies. Risk warning Risks of demand recovery falling short of expectations; risks of AIGC progress falling short of expectations; further escalation of external sanctions.Level of risk.Esta es mi casa, donde paso la mayor parte del tiempo.