Sealand: Switch exchange chips benefit AI and data center development, domestic alternatives open up growth ceiling.

Sealand released a research report stating that the Switch industry as a whole is benefiting from AI and data center construction. PCIe Switches are mainly used in computer I/O, NVLink/UALink Switches are mainly used for high-speed interconnection between scale-up cards, and Ethernet Switches are mainly used in scale-out scenarios. The industry believes that the Switch industry is expected to continue benefiting from the ongoing development of AI and data centers, and as a result, it maintains a "recommended" rating for the computer industry. Sealand's main points are as follows: Switches are mainly used in computer I/O, scale-up, and scale-out scenarios. PCIe Switches are mainly used for general port expansion devices in I/O devices. PCIe Switches can be used to expand host PCIe ports to connect a large number of input/output (I/O) or other subsystems in servers and storage systems. According to MICROCHIP's official website, their PCIe switches provide ultra-high-speed real-time data transmission, extremely low latency, and strong multi-device connectivity capabilities by seamlessly transferring information from multiple endpoints. The demand for Switches is being driven by the development of AI and data centers. The PCIe and Ethernet Switch markets are expected to remain robust. According to IDC data, global Ethernet switch market revenue is expected to reach $55.1 billion by 2025, a year-on-year growth of 31.5%; with data center Ethernet switch revenue reaching $32.5 billion, a year-on-year growth of 53.5%. According to DATAINTELO, the global PCIe switch market is approximately $2.8 billion in 2025 and is expected to reach $6.9 billion by 2034, with a CAGR of about 10.6% from 2026 to 2034. PCIe switches, as key semiconductor components, can share and route PCIe channels between multiple devices, significantly improving bandwidth efficiency and scalability in modern computing architectures. The concentration of top Switch industry players is high, with ample room for domestic alternatives. The competition in the PCIe switch market is relatively concentrated. According to DATAINTELO's estimates, Broadcom holds a leading position in revenue share, expecting to account for about 31.5% of global PCIe switch revenue by 2025. Broadcom's dominant position is largely due to its acquisition of PLX Technology in 2012, with MICROCHIP Technology's acquisition of Microsemi making it the second-largest market share holder at 18.2%. In the Ethernet Switch market, as of Q4 2025, Cisco's total Ethernet switch revenue reached $4.5 billion, with a market share of approximately 27.6%; in the Ethernet switch chip market, in 2020, Broadcom, MediaTek, and Realtek accounted for 61.7%, 20.0%, and 16.1% respectively by sales volume, totaling 97.8%. Relevant Companies: 1) Switch: Vantone Neo Development Group, Montage Technology, Shengke Communication, Ruijie Networks; 2) CPU: Hygon Information Technology, China Greatwall Technology Group (Feiteng Information); 3) AI chips: Cambricon, Muxi shares, BIREN TECH, ILUVATAR COREX, Verisilicon Microelectronics (Shanghai) Co., Ltd.; 4) Super Nodes: Inspur Electronic Information Industry, Huaqin Co., Ltd., Dawning Information Industry, Unisplendour Corporation, Foxconn Industrial Internet, LENOVO GROUP; 5) Liquid Cooling: Dongguan Dingtong Precision Metal Co., Ltd., Shenzhen FRD Science & Technology, Guangdong Shenling Environmental Systems; 6) Power Supply: China Greatwall Technology Group, Shenzhen Honor Electronic, Shenzhen Megmeet Electrical, Hangzhou Zhonhen Electric; 7) Computing Power Rental: Sharetronic Data Technology, Glory View Technology, Maxvision Technology Corp., Jiangsu Lettall Electronic, Jwipc Technology, RunJian Co., Ltd. Risk Warning: Risks of Switch chip technology research and development and iteration, risks of concentrated downstream industry demand and cyclical fluctuations, risks of global trade frictions, risks of supply chain fluctuations and capacity guarantees, risks of macroeconomic fluctuations, risks of domestic alternative landing falling short of expectations.