The Zhitong Finance App learned that Guolian Securities released a research report saying that Nvidia (NVDA.US)'s performance continued to rise and exceed expectations. In particular, the rapid growth in the data center business showed strong demand for computing power. The domestic optical communications industry is expected to fully benefit from the strong demand for computing power in North America and achieve long-term growth in performance. Furthermore, as the cooling technology of Blackwell products is fully converted from air cooling to liquid cooling, companies involved in liquid cooling data centers are expected to benefit greatly. Recommended attention: 1) Optical modules: Zhongji Xuchuang (300308.SZ), Xinyisheng (300502.SZ), Tianfu Communications (300394.SZ); 2) Liquid-cooled data center related companies.

Event: On May 22, Nvidia released its first quarter report for the 2025 fiscal year. In fiscal year 2025, Q1 achieved operating income of US$26 billion, up 262% year on year, up 18% month on month; net profit of US$14.88 billion, up 628% year on year and 21% month on month. GAAP gross margin for the first quarter was 78.4%, and non-GAAP gross margin was 78.9%. The company expects Q2 revenue for fiscal year 2025 to be 28 billion US dollars, fluctuating about 2%; GAAP and non-GAAP gross margins are 74.8% and 75.5% respectively, fluctuating 50 bps up and down, and the gross margin for the whole year is expected to be around 75%.

The views of Guolian Securities are as follows:

Data center: Revenue reached a record high, GPU shipments increased significantly

Nvidia's Q1 data center revenue for fiscal year 2025 reached US$22.563 billion, up 427% year on year; of this, computing revenue was US$19.4 billion, up 478% year on year and 29% month on month, mainly due to increased shipments of the NvidiaHopperGPU computing platform, which can be used for large-scale language model training and inference. Data center business customers are mainly enterprises and Internet companies, and large cloud vendors contribute about 45% of sales revenue.

Network: End-to-end solution revenue has increased significantly, and connected products benefit from IB network volume

Nvidia's Q1 network business revenue for fiscal year 2025 was $3.2 billion, up 242% year over year, mainly due to a significant increase in InfiniBand end-to-end solutions. Interconnect products in IB networks mainly include DAC high-speed copper cables, AOC active cables, and optical modules. The company began deploying a new spectrum and Ethernet network solution optimized for AI in the first quarter. Compared with traditional Ethernet spectrum, it provided 1.6 times the performance of AI processing.

Liquid cooling: Blackwell platform cooling technology switches to liquid cooling

Nvidia launched the Blackwell platform to drive AI computation on a trillion-parameter scale, as well as Blackwell-driven DGXSuperPods for generative AI supercomputing. According to the Science and Technology Innovation Board Daily, starting with the B100, the cooling technology for Nvidia products will switch from air cooling to liquid cooling technology.

Risk warning: AI technology development falls short of anticipated risks; industry demand falls short of anticipated risks.