Technology hardware in Greater China: Computing infrastructure construction, servers, AI hardware and components (Morgan Stanley)
The Morgan Stanley report pointed out that there are investment opportunities in AI GPU, ASIC server upgrades, and AI infrastructure hardware.
The Morgan Stanley report pointed out that there are investment opportunities in AI GPU, ASIC server upgrades, and AI infrastructure hardware. The report provides a detailed analysis of the growth in demand for core components such as AI servers and edge AI to MLCC and ABF substrates. This means that the prosperity of the AI hardware supply chain is spreading, and the entire industry chain, from chips to complete machines to supporting components, is benefiting. The market is fully aware of AI server leaders (such as Quanta and Wistron), but may have underestimated the explosive demand for passive components (such as MLCC) and packaging substrates (ABF) brought about by technology upgrades (such as VR200 racks). The report believes that the valuation premium of the AI hardware supply chain is reasonable. One sentence conclusion: The AI arms race is spreading from GPUs to the entire hardware supply chain. Servers, cooling, passive components, and substrates will all see value revaluation and demand explosion. Positive/negative: Positive for AI server ODM (Quanta, Wistron), MLCC (ASE), ABF substrate (Xinxing), etc. The current market is fully priced for the leading AI server, but the explosion of demand for supporting hardware (MLCC, ABF) may not be expected. Catalysts: 1) The official release and specifications of NVIDIA’s next-generation AI chip (VR200); 2) Quarterly shipment guidance from various AI server manufacturers.