Guosheng: SST is currently in the "product validation import period", expecting it to be the starting point of a new wave of market trends.

Guosheng's research report stated that Solid-State Transformers (SST) are at the industry tipping point from 0 to 1. Similar to the transformative significance of CPO (optoelectronic packaging) in optical communication, SST is restructuring the power supply architecture of data centers - it not only conforms to the future trend of 800V high-voltage direct current access but also achieves compatibility between AC and DC in the "gray area", significantly simplifying the structure. For small and medium-sized New Cloud companies, SST means faster deployment speed. Although large-scale implementation is expected around 2028, SST is currently in the product validation and introduction phase and is expected to become the starting point of a new market trend. Guosheng's main viewpoints are as follows: Why is SST considered the "CPO" in electricity? Traditional distribution transformers rely on large silicon steel sheets and copper wire coils, which are bulky and heavy, and can only perform AC voltage conversion; while SST (Solid-State Transformer) replaces traditional iron core copper wire with power electronic devices (such as silicon carbide SiC and other high-voltage semiconductors), integrating AC/DC rectification, DC/DC conversion, and DC/AC inversion, reducing volume and weight, and breaking through the physical barriers between AC and DC, revolutionizing the power supply for AI data centers with high power density. SST: The "CPO" in the power supply system. Just as CPO integrates the light engine with the chip packaging, shortening the optical path to solve bandwidth/power consumption bottlenecks; SST integrates rectification, conversion, and inversion, reducing conversion levels, shortening the electrical path to solve loss/density/response bottlenecks. The essence of both is to replace traditional multi-level discrete architectures with highly integrated ones to reduce power consumption and save space. Why does SST conform to future trends? Guosheng believes that SST is not only cutting-edge technology but also an inevitable choice that addresses the underlying pain points of future data centers. 800V DC access: Revolution in simplified circuits. As AI clusters evolve from the MW level to the GW level, to reduce busbar losses, power supplies within server racks are upgrading to 800V or even higher-voltage DC supplies. Traditional transformers output low-voltage AC power, which needs to go through multiple AC/DC conversions via uninterruptible power supplies (UPS) and server power supplies (PSU), leading to significant losses. SST can directly step down from the high-voltage grid and output matching 800V or higher-voltage DC power directly to server racks, eliminating redundant rectification steps, making it the optimal solution for next-generation AI clusters with high-voltage DC access. "Gray area" simplification: AC/DC compatibility. Traditional data centers have a complex "gray area" from the power generation side to the server room, including UPS, emergency generators, switchgear, transformers, cooling systems, heat exchangers, etc. SST, with its DC-link, naturally possesses multi-port energy router capabilities: 1) AC port: can directly connect to existing AC loads; 2) DC port: photovoltaic, energy storage, AI servers, and other DC loads can be directly connected, eliminating the need for independent AC/DC conversion steps. This means the "gray area" of AC/DC systems can be managed by SST, significantly simplifying the structure, reducing the number and types of equipment. Empowering New Cloud companies for rapid deployment. For small and medium-sized new smart cloud service providers (New Cloud / GPU Cloud companies), time is their greatest competitive advantage, and traditional substation and power distribution system construction has a long lead time and high civil construction requirements. SST adopts prefabricated, modular design, making it ideal for "plug and play" and containerized deployment. For New Cloud companies, it solves the bottleneck in their power infrastructure construction, enabling rapid deployment of standardized modules, significantly shortening the delivery cycle of AIDC. Viewing market trends from the "validation period" In terms of investment pace, there is a time gap in the market's understanding of SST, as it is seen as a long-term technology, but the pace of industrial advancement is far beyond expectations. SST is currently in the "product validation and introduction phase," expected to be the starting point of a new market trend. By 2026, the following has been observed: Frequent industry actions: Leading power equipment manufacturers (such as Beijing Sifang Automation, etc.) have successively released SST (Solid-State Transformer) 1.0 products targeting data centers. Reshaping valuation logic: During this stage, SST products are transitioning from "blueprints" to "verification". Just as in the initial sampling and testing stage of CPO in the light module field, the period of "product introduction and validation" is often the stage where related concept stocks have the greatest valuation elasticity. SST is not expected to "explode tomorrow," but 2026 is the best window for observation and layout. Risk warning AI development falls short of expectations, computing power demand falls short of expectations, and market competition risks.