CMBC International: Nvidia transitions to a full-stack AI factory platform, optimistic about domestic AI beneficiaries such as Hongjie Xuchuang

CICC International released a report pointing out that NVIDIA's first-quarter performance exceeded expectations, and raised its guidance for the end of July to the next quarter. However, the more important revelation is that the economic benefits of AI infrastructure are becoming increasingly sustainable. In addition to the $1 trillion Blackwell/Rubin visibility until 2027, the new Vera CPU monetization opportunity, and a larger capital return plan, the first-quarter performance alleviated market concerns about 2027 being only a peak year of demand and reinforced NVIDIA's transformation from a GPU supplier to a full-stack AI factory platform. The bank pointed out that the Blackwell/Rubin visibility and Vera CPU extend NVIDIA's growth story from GPU demand to the control layer of the AI factory platform. The bank sees Vera as NVIDIA's move into the CPU-side control layer of AI intelligent bodies, where the CPU is responsible for managing scheduling, tool usage, storage, etc., while the GPU is responsible for inference and reasoning. The bank also continues to be optimistic about domestic beneficiaries of the global expansion of AI infrastructure capital expenditure, including leading opto-electronics module manufacturer InnoLux, PCB manufacturer Shengyi Technology, and data center power supplier Enesai Technology.