Sealand: GPU+ASIC penetration accelerates, adding more growth to the liquid cooling market.

Sealand's research report states that in addition to NVIDIA Corporation's (NVDA.US) GPU servers, ASIC servers are gradually introducing liquid cooling solutions. With the scale deployment of self-developed ASIC chips by leading CSPs and external commercial use, the penetration rate of liquid cooling in data centers is accelerating. Companies in mainland China have become partners with leading chip manufacturers, and there is the potential for the emergence of internationally renowned liquid cooling manufacturers. Sealand maintains a "recommended" rating for the computer industry. Sealand's main points are as follows: 1. The penetration rate of liquid cooling in AI servers is accelerating, with continuous iteration of technical solutions. Chip power consumption exceeding air cooling limits: Chips such as NVIDIA Corporation's VR300 (3600W), AMD's MI355 (1400W), Alphabet Inc.'s CTPU v7 (approximately 980W) have TDPs approaching or exceeding 1000W, making air cooling inadequate and liquid cooling a necessity. Rapid increase in penetration rate: TrendForce predicts that by 2026, the penetration rate of liquid cooling in AI data centers will reach 40% (14% in 2024). Continuous technological upgrades: Currently, cold plate liquid cooling is mainstream, but NVIDIA Corporation may push the Rubin Ultra architecture towards microchannel technology (MCCP/MCL) in the future. 2. Shipments of ASIC chips are expected to increase, with the liquid cooling market space reaching $16.5 billion in 2026. Rise in non-GPU cooling demand: It is expected that by 2026, shipments of data center ASIC chips will exceed 8 million, and by 2027, they may surpass 10 million, potentially becoming an important source of incremental growth in the liquid cooling market. Market size estimation: Calculated at $1376 per AI chip, the GPU liquid cooling market for NVIDIA Corporation in 2026 is expected to reach $11.9 billion, and the ASIC liquid cooling market is expected to reach $4.6 billion, with the overall data center liquid cooling market size expected to reach $16.5 billion (approximately 116.2 billion RMB). The CAGR for 2025-2026 is estimated to be around 59%. 3. Catalyzed by domestic and international demand, mainland Chinese manufacturers are expected to start receiving orders. As a benchmark for mainland Chinese liquid cooling manufacturers, Qihong Technology (as of November 2025) has achieved a record high in revenue for 10 consecutive months, with year-on-year growth continuing to increase month by month. The company expects that its performance in 2026 will surpass that of 2025, and overall gross profit is also expected to increase. Shuanghong is optimistic that its revenue in 2026 will exceed 50% year-on-year, and the company believes that its liquid cooling products still have growth potential for at least 2-3 years. Currently, mainland Chinese companies have become partners with leading chip manufacturers, and super nodes are gradually becoming a consensus in AI infrastructure construction. With the increasing industry penetration rate, mainland Chinese liquid cooling manufacturers are expected to accelerate order fulfillment, expand revenue scale, and improve profitability.