China Securities Co., Ltd.: The power supply revolution officially begins, with the potential for resonance in four major directions including power hosts and energy storage.

China Securities Co., Ltd. released a research report stating that the fundamental DRIVE of AI power supply solutions lies in the continuous increase in single-chip and single-cabinet power. Currently, AI chip manufacturers led by NVIDIA Corporation (NVDA.US) are continuously upgrading the power of their latest AI chips. Through multi-chip designs such as NVL72 (NVIDIA Corporation) and Superpod (Alphabet Inc. Class C), the power of a single cabinet is further advancing towards the MW level. By 2028, the power of new AI data centers in North America could reach 71GW. According to industry trends, focusing on flexibility and corporate alpha, AIDC power hosts, station-level energy storage, core incremental components, as well as GaN, SiC, and other third-generation semiconductors are worth paying attention to. Key points from China Securities Co., Ltd. include: The fundamental DRIVE of AI power supply solutions is the continuous increase in single-chip and single-cabinet power AI chip manufacturers led by NVIDIA Corporation continuously iterate and upgrade the power of their latest AI chips. NVIDIA Corporation has increased the power from 250W in the Maxwell era to over 1000W in the B200 chip era. Self-developed chips from companies such as Alphabet Inc. Class C, Microsoft Corporation, Meta, etc., are also advancing towards over 1000W per chip. Through multi-chip designs like NVL72 (NVIDIA Corporation) and Superpod (Alphabet Inc. Class C), the power of a single cabinet is further advancing towards the MW level. By 2028, the power of new AI data centers in North America could reach 71GW. High power, high voltage, and DC are the main directions for the iteration of AIDC power supplies NVIDIA Corporation's release of an 800V power supply white paper provides a clear iteration path of AC800V DC (transition of low-voltage rectifiers)800V DC (HVDC sidecar solution)SST (solid-state transformer). At the same time, the OCP organization has established a power supply standard of 400V through multiple standard iterations. Both aim to achieve MW-level cabinet power through DC power supply and recognize SST as the ultimate power supply solution. From nothing to something, from small to large: What changes and growth have the iteration of power supply solutions brought? In terms of product form, HVDC Sidecar and SST hosts, which integrate various devices and functions, can achieve multiple functions such as step-down, AC-DC conversion, backup power, and improvement of power quality. The key challenges in their research and development include power switching modules (PSUs) and high-frequency isolation transformers. In terms of technical foundation, third-generation wide bandgap semiconductors such as SiC and GaN are key to power supplies achieving high voltage, high efficiency, and high ratio output. Additionally, the design of circuit topologies requires high research and development capabilities for companies. In terms of incremental links, after adopting high-voltage DC power supply, components such as solid-state circuit breakers, DC/DC power supplies, electronic fuses, vertical power distribution (VPD), etc., need to be added to the cabinet. To ensure power supply reliability and power quality, CBU and BBU also become necessary. Energy storage becomes the main choice to solve the gap in American Electric Power Company, Inc. and the crisis of data center interconnection. Investment recommendation: Priority in industry trends, considering flexibility and corporate alpha, the following four directions are worth paying attention to (1) AIDC power hosts (PSU, HVDC, SST): Sungrow Power Supply (300274.SZ), Shenzhen Megmeet Electrical (002851.SZ), Shenzhen Honor Electronic (300870.SZ), Hainan Jinpan Smart Technology (688676.SH), Sieyuan Electric (002028.SZ), Eaglerise Electric & Electronic (002922.SZ), Shenzhen Kstar Science & Technology (002518.SZ), Kehua Data Co., Ltd. (002335.SZ), Hangzhou Zhonhen Electric (002364.SZ), Windsun Science & Technology Co., Ltd. (688663.SH); (2) Station-level energy storage: Sungrow Power Supply, CSIQ (CSIQ.US), Fluence Energy (FLNC.US), etc. (3) Core incremental components (solid-state circuit breakers, electronic fuses, CBU/BBU, DC/DC, high-frequency isolation transformer, VPD, etc.): Shanghai Liangxin Electrical (002706.SZ), Jiangsu Azure Corporation (002245.SZ), Vicor Corporation (VICR.US), etc.; (4) GaN, SiC, and other third-generation semiconductors. Combining corporate alpha, business flexibility, and progress, Sungrow Power Supply, Shenzhen Megmeet Electrical, Shenzhen Honor Electronic, Shanghai Liangxin Electrical, Hainan Jinpan Smart Technology, etc. are recommended.