The demand for computing power explodes, and new investment opportunities emerge in the AI industry chain

Tech 2023-05-31 08:18:01 Source: Network

Since May, the Block trade of Fulian, the leading industry of AI servers, has risen significantly. At the same time, the turnover of many chip concept stocks such as Lixun Precision, Zhongji Xuchuang, Lanqi Technology and other Block trade was also high

Since May, the Block trade of Fulian, the leading industry of AI servers, has risen significantly. At the same time, the turnover of many chip concept stocks such as Lixun Precision, Zhongji Xuchuang, Lanqi Technology and other Block trade was also high.

During an interview with China Securities News in the summer, a stock strategist from the investment director office of UBS Wealth Management stated that there are many new investment opportunities emerging in the AI hardware field. In the long run, AI software and hardware will mutually promote development.

Block trade heats up

According to the iFinD data of Flush, on May 26 and 29, there were 70 Block trade of Industrial Fulian, with a total of 58 million shares and a total turnover of 893 million yuan. Among them, the buyers of 16 Block trade are special seats for institutions, and institutions have bought 302 million yuan accumulatively. The sellers are all securities business departments of Ping An Securities Shenzhen Longhua Renmin Road.

As of May 30, there have been 75 Block trade of Industrial Fulian since May, all of which have been concluded at a discount, with a total of 100 million shares and a total turnover of 1.518 billion yuan. Since this year, the cumulative turnover of industrial Fulian Block trade has been 1.589 billion yuan, of which the turnover since May has accounted for 96%.

Public information shows that the main products of Industrial Fulian include network equipment, telecommunications equipment, servers, etc.

From the perspective of the secondary market, on May 30th, Industrial Wealth Alliance reported 18.03 yuan per share, with a total market value of about 358.1 billion yuan. Since May, the cumulative increase has been 11.85%, and this year, the cumulative increase has been 96.41%. From the performance indicators, Industrial Fulian achieved a revenue of 105.889 billion yuan in the first quarter, a year-on-year increase of 0.79%; The net profit attributable to the parent company was 3.128 billion yuan, a year-on-year decrease of 3.91%.

Ma Tianyi, Chief Analyst of Minsheng Securities' Communication Industry, stated that the demand for computing power is exploding, and AI servers are expected to increase in volume. It is expected that the company's cloud service business will accelerate its development. The company, with its global layout and strong supply chain advantages, is expected to benefit first.

The computing power sector is favored

According to the iFinD data of Flush, as of May 30, there have been 3438 Block trade in the A-share market since May, with a total of 3.954 billion shares and a total of 50.904 billion yuan.

The reporter found that, in addition to Industrial Fulian, the total turnover of many chip concept stocks such as Lixun Precision, Zhongji Xuchuang, and Lanqi Technology since May has been high, all exceeding 300 million yuan. Take Lixun Precision as an example. As of May 30, since May, Lixun Precision has had a fair price Block trade, with a turnover of 471 million yuan. The buyer is a special seat for institutions. It is worth mentioning that recently, Li Xun Precision stated on the interactive platform that the company has deeply laid out core components such as high-speed connectors, connecting cables, power supplies, and thermal management in high computing power servers.

The AI industry chain is usually composed of upstream data and computing layers, midstream algorithm layers, and downstream application layers. Recently, the market has been paying more attention to the upstream industry chain, especially in the computing power sector. Xia Xia stated that there are many new investment opportunities emerging in AI hardware, and the application of AI software is supported by the computing power of hardware.

According to the research report of Huaxin Securities, under the continuous catalysis of ChatGPT, the demand for AI computing power in China will maintain a growth momentum, and computing power server manufacturers are expected to benefit. It is estimated that ChatGPT's total computing power requires 7 to 8 data centers with an investment scale of 3 billion yuan and a computing power of 500P to support its operation. In the era of digital economy, the total amount of global data and the scale of computing power will show a high-speed growth trend.

Long term improvement in AI+applications

Faced with the recent fluctuations in the AI sector, several industry insiders have stated that in the medium to long term, capital injection will drive the iteration and expansion of AI underlying technology, and the AI+economy is expected to continue to improve.

Xia Xia stated that most AI technologies have not yet been truly commercialized, making it difficult to measure valuations using indicators such as price to earnings ratios. We are generally optimistic about the Chinese stock market, and both in terms of profitability certainty and valuation, Chinese technology stocks have strong attractiveness

Looking ahead, Zhang Xia, Chief Strategic Analyst at China Merchants Securities, stated that although the performance of AI+applications has not yet been realized, the AI+economy will continue to improve in the medium to long term. Currently, AI+is still in the first half of introducing new technologies. As AI+applications gradually move from concept to growth, the second half of the AI+market is expected to spread to terminal applications through large models.

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Tag: The demand for computing power explodes and new investment