On June 6th, the A-share computing power industry chain boiled. Gongye Fulian (601138. SH) saw a significant increase this morning. As of press release, Gongye Fulian (601138. SH) rose the limit to 26.07 yuan per share, with a transaction amount of 6.858 billion yuan and a latest market value of 517.86 billion yuan.
It is worth noting that on June 5th Eastern Time, the stock price of AI chip leader Nvidia continued to soar, rising by more than 5%, with a market value exceeding the $3 trillion mark ($3.01 trillion), surpassing Apple ($3 trillion), and becoming the second largest listed company in the US stock market after Microsoft ($3.15 trillion).
Nvidia's stock price surged, reflecting investors' optimistic expectations for the AI computing industry. In Nvidia's most recent quarterly financial report, its main AI computing business data center revenue increased by 427% year-on-year, reaching $22.6 billion, accounting for approximately 86% of the company's total sales.
According to Shanghai Securities News on June 6th, according to Digitimes, Foxconn Technology Group and Nvidia announced the establishment of an advanced computing center at COMPUTEX 2024. This facility is centered around NVIDIA GB200 servers and aims to completely transform Foxconn's intelligent manufacturing, electric vehicles (EVs), and smart city platforms.
It is worth noting that Industrial Fulian recently stated on the investor interaction platform that in the field of advanced cooling, the rapid growth of upstream computing power construction poses unprecedented challenges to the efficiency, cooling, and iteration speed of AI servers. With the increasing demand for computing power, the importance of solving the energy consumption and cooling problem of AI equipment is becoming increasingly prominent. The company faces challenges and is committed to developing liquid cooling technology solutions, continuously improving data center efficiency and sustainability. It has created a full range of liquid cooling solutions from components, servers to systems, covering the needs of all scenarios from the edge to the data center, effectively improving the heat dissipation performance of liquid cooling systems.
On the evening of March 13th, Industrial Rich Union released its 2023 annual performance report. The report shows that the company achieved a revenue of 476.34 billion yuan throughout the year, a year-on-year decrease of 6.94%; Benefiting from the strong growth in demand for AI computing power, the company's profitability has improved, with a net profit attributable to the parent company of 21.04 billion yuan, a year-on-year increase of 4.8%.
In 2023, as ChatGPT continues to be popular, AI applications are springing up like mushrooms after rain. Major cloud service providers are continuously increasing their investment in AI, promoting the continuous upgrading and expansion of data center infrastructure, which directly injects power into the cloud computing business of upstream supply chain enterprise Industrial Fulian.
The financial report shows that the revenue of the Industrial Fulian Cloud Computing sector in 2023 reached 194.308 billion yuan, a year-on-year decrease of 8.54%, accounting for more than 40% of the total revenue. Among them, the business of cloud service providers continues to improve, accounting for nearly 50% of cloud computing revenue rapidly; The AI server business, which has attracted much industry attention, accounts for about 30% of cloud computing revenue. Although revenue has declined, the gross profit margin of this sector has increased by 1.12 percentage points compared to the previous year, to 5.08%.
Industrial Fulian announced on the evening of April 29th that its net profit for the first quarter of 2024 was 4.184 billion yuan, a year-on-year increase of 33.77%. During the reporting period, the company's cloud computing business revenue accounted for nearly 50% of the overall revenue; AI servers account for nearly 40% of the overall server revenue, with AI server revenue increasing nearly twice year-on-year and showing a nearly double-digit growth rate month on month; In addition, the number of generative AI servers has increased nearly threefold year-on-year and has also shown a double-digit growth rate compared to the previous period.
As a pioneer in the transformation of "intelligent manufacturing+industrial Internet" under Foxconn Technology Group, Industrial Fulian's industrial Internet sector is expected to be high.
Looking ahead to the development of 2024, Zheng Hongmeng, Chairman of Industrial Fulian, stated in his financial report that "AI will become the most important driving force for global technological development in 2023, and it will also be a key support for Industrial Fulian to achieve performance growth. This year is the sixth year of the company's listing, the beginning of the second five years, and a crucial year to connect the past and the future. AI remains our core area of focus.". Next, we will accelerate the '2+2' strategy, and further expand the business landscape around 'big data' and 'robots' on the basis of continuously strengthening the core competitiveness of' high-end intelligent manufacturing+industrial Internet '. "