The concept of high-speed connectors led by copper cables has greatly strengthened.
Since the beginning of this year, the concept of artificial intelligence led by Nvidia has once again skyrocketed, and several AI stocks in the US stock market, such as Superpower Computers, have seen their stock prices soar several times in just a few months. Multiple stocks in the A-share market, such as Jingyan Technology, Jinbaize, and Shannon Xinchuang, saw their largest gains of over 100% this year.
The recently held NVIDIA Global Technology Conference (GTC) has also attracted the attention of global investors, with new technologies once again igniting the A-share market. The concept of high-speed connectors led by copper cables has significantly strengthened, and individual stocks such as Huafeng Technology, Dingtong Technology, Zhaolong Interconnection, and Haofeng Technology have all hit the limit up by 20cm.
In the continuously popular new energy vehicle sector, the leading stock in the Hong Kong stock market, Ideal Automobile, has seen a significant decline in its stock price recently, with a 30% drop in over 10 trading days.
250 billion automotive leaders continue to plummet
After a sharp drop of nearly 6% yesterday, the Hong Kong stock of Ideal Automobile plummeted again today, closing down nearly 8%. Looking ahead, at the end of February, the stock price once reached as high as HKD 182.9, with the latest price being only HKD 127.9. In just over 10 trading days, it has fallen by more than 30%, and the latest total market value is nearly HKD 250 billion.
The reason for the sharp drop in Ideal Automobile's stock price is related to the poor sales of MEGA models recently announced. According to relevant reports, it has been half a month since the release of MEGA, and Ideal has not yet disclosed the order data for MEGA and L series. The expected order for MEGA within 24 hours was around 3000 units, but the final result did not meet expectations, only achieving half of the target. Within half a month of its release, MEGA has received orders for nearly 4000 units, and this month the factory's MEGA production capacity is 5000 units.
Regarding the poor sales of MEGA, CEO Li Xiang had previously explained that MEGA had experienced sluggish orders due to being subjected to "cyber attacks".
According to institutional analysis, the ideal MEGA order volume is not ideal due to two reasons: firstly, the price is too high. The price exceeding 550000 yuan makes it a ceiling level presence among many domestic new force MPV models, but it is not as outstanding in terms of product strength; Secondly, the relatively innovative design of MEGA has also polarized the reputation of the car, with various negative reviews on the internet.
Nvidia's new themes have exploded
According to reports, the Nvidia GB200NVLink Switch and Spine are connected by 72 Blackwell GPUs using NVLink full interconnect, with 5000 NVLink copper cables (totaling over 2 miles in length). NVIDIA's DAC copper cable is the most cost-effective way to create high-speed, low latency 100G/EDR, 200G/HDR, and 400G/NDR links in the Inf iniBand switching network and NVIDIA GPU accelerated artificial intelligence end-to-end systems.
Some institutions predict that with the growth of demand for AI servers, large switches, and routers, it is expected to promote the increase in demand for copper cable backplane connectors. The institution also stated that the continuous growth of AI is very beneficial for domestic high-speed backplane connector manufacturers. On the one hand, the patent barriers faced by domestic manufacturers have weakened compared to the past. On the other hand, in the context of trade frictions between China and the United States, the speed of domestic substitution will accelerate.
Rare concept stocks released
In the A-share market, there are currently a total of 50 main products with high-speed connector products, among which there are not many concept stocks led by copper cables. Databao has summarized them as follows:
Zhaolong Interconnect: Currently, it is capable of large-scale production and application of DAC high-speed transmission components and supporting high-speed transmission cables with a transmission rate of up to 400G. At the same time, it actively lays out high-speed cable components with a transmission rate of 800G, which can meet the data transmission needs of large and even super data centers and high-speed communication fields, and build a strong product qualification barrier.
Huafeng Technology: Huawei's core supplier of high-speed backplane connectors, accelerating the development of new customers such as ZTE. In 2018, Huawei began collaborating with the company in the field of high-speed backplane connectors; In 2019, the high-speed backplane connectors developed by the company passed Huawei's acceptance certification and achieved bulk supply. In terms of product matrix, the company has increased investment in the research and development of new communication connectors, gradually supplementing connectors in categories such as CPU SOCKET, DDR, and PCIe.
Dingtong Technology: From the perspective of customers, the company's main direct customers are well-known connector module manufacturers such as Amphenol, Moss, and AVIC Optoelectronics. The company's communication connector components are integrated with other functional components by customers to form communication connector modules, which are ultimately supplied to communication equipment manufacturers such as Huawei, ZTE, and Ericsson.
Yidong Electronics: From the perspective of customers, in the field of connectors and components, it includes Tyco, Amphenol, Moss, Lixun Precision, Shentai Electronics, and AVIC Optoelectronics. From a product perspective, according to the investor relations record as of September 13, 2023, the company has cooperated with the layout of industry leading customers, continuously invested in the development of new models of optical communication components, and continued to develop and expand the QSFP-DD 112G/OSFP-DD/OSFP series of new products. The number of development of such new products has increased significantly.
According to Databao statistics, among the connector concept stocks, Lixun Precision has the highest institutional attention, with a total of 25 institutional ratings. In addition, stocks such as AVIC Optoelectronics, Bowei Alloy, Electric Connection Technology, and Aerospace Electrical have ratings from more than 10 institutions.
According to consistent predictions from institutions, the net profit growth rate of stocks such as Dianlian Technology, Aerospace Electrical Appliances, Shenglu Communication, Yihua Shares, Dingtong Technology, Huafeng Technology, and Zhaolong Interconnection will all exceed 30% this year and next.
Disclaimer: All information provided by Databao does not constitute investment advice. The stock market carries risks and investment should be cautious.
