Hong Kong Stock Concept Tracking | Consumer Electronics "Spring Festival Gala" is Coming, Global Chip Giants Will Gather at AIPC, Becoming the Focus (with Concept Stocks)

Zhitong App has learned that the 2024 International Consumer Electronics Show (CES 2024) will be held in Las Vegas, USA from January 9th to 12th. This event will bring together top technology companies from around the world to showcase their latest achievements in fields such as artificial intelligence (AI), automobiles, robotics, augmented reality (AR), and virtual reality (VR). It will set the direction for the entire consumer electronics industry and the technology world in the coming year. Analyst Wu Yanjing from Galaxy Securities stated that the focus of CES 2024 is expected to shift from electric vehicles to AI PCs. The expected launch of new products is expected to successfully open up the market. 2024 will be the first year of large-scale shipments for AI PCs, and with the continuous decline in PC inventory levels nearing completion, AI PCs are expected to achieve both volume and price increases.

At this year's CES, the three major chip giants NVIDIA, Intel, and AMD are expected to launch a series of new products around the theme of AI.

NVIDIA will hold an online "NVIDIA CES 2024" special speech at 8 am local time on January 8th. The NVIDIA RTX 40 SUPER series graphics cards are expected to be released during the keynote speech and will be available for online and offline sales starting from January 17th. In addition, NVIDIA will bring 14 live speeches during the exhibition, covering topics such as generative AI, metaverse, robotics, smart cars, and game design.

It is expected that Intel will release the flagship processor i9-14900KS, the 14th generation 65W desktop processor, and the 14th generation HX series gaming laptop processor at CES 2024. Intel will showcase how the Intel Core Ultra processor powers the latest AI PCs to the public on the afternoon of January 8th.

AMD announced that it will hold a CES 2024 press conference at 23:00 Beijing time on January 8th. Chairman and CEO Su Zifeng and Senior Vice President Jack Huynh will discuss the future of personal computer artificial intelligence (AIPC). According to media reports, AMD is expected to release new models of the Ryzen 8000G desktop APU, R7 5700X3D, R7 5700, and other processors, as well as the RX 7600 XT 16G desktop graphics card and RX 7700M/RX 7800M notebook GPUs.

In addition, it is expected that well-known brands such as Acer, ASUS, MSI, and Gigabyte will launch the first wave of AI PCs and gaming products at CES. These products will not only be equipped with the latest AI chips and graphics cards but also achieve innovative breakthroughs in user-friendly design and intelligent interaction, bringing users a brand-new intelligent experience. It is worth mentioning that on December 15th last year, Lenovo released two AI PC products: Thinkpad X1 Carbon AI and Lenovo Xiaoxin Pro16 AI Core Edition, and simultaneously started pre-sales. It is understood that these two products have three major features: embedded hybrid AI computing power, innovative/enhanced AI experience, and upgraded device experience, which means that Lenovo's AI PC officially enters the AI Ready stage.

PC officially enters the AI era, and 2024 is expected to become the first year of AIPC popularization. According to IDC data, the penetration rate of AIPC in the Chinese market was only 8.1% in 2023. However, with more and more new PCs equipped with AI acceleration engines, the penetration rate of AIPC is expected to grow rapidly by 2024. It is estimated that in the Chinese market, the penetration rate of AIPC will increase significantly to 54.7%, and by 2027, this proportion will further rise to about 85%.

Canalys also stated that the global PC market will recover to the level of 2019 in 2024. Moreover, there will be a series of AIPC products coming out, driving the AIPC shipment volume to grow rapidly from 25 million units in 2022 to at least 50 million units, accounting for about 19% of the overall PC shipment volume.

Huachuang Securities pointed out that low latency + privacy protection will drive the demand for large-scale model localization, and AI PC with edge computing power is expected to solve industry pain points and become the first large-scale landing of AI terminals. AI PC can realize some AI applications on the PC user side, which is expected to drive a large number of PC replacement demands and may drive the PC industry into a new round of growth cycle.

Open Source Securities stated that with the layout of technology giants, AI PC is expected to accelerate penetration, and 2024 is expected to usher in the first year of AI PC. Beneficiaries in the chip sector include HGTECH, Loongson Technology, etc.; beneficiaries in the software sector include Softtek, Runhe Software, China Software, Horizon Robotics, etc.; beneficiaries in the intelligent hardware sector include iFlytek, UniIC, etc.

Relevant concept stocks:

Lenovo Group (00992): On December 15th last year, at the 2023 Intel New Product Launch and AI Technology Innovation Party, Lenovo Group's Vice President and Chief Strategy Officer, Abulikemu. Abulikemiti announced that Lenovo ThinkPad X1 Carbon AI and Lenovo Xiaoxin Pro16 AI Core Edition, two AI Ready AI PC products, were officially launched at 15:00 on the same day, and pre-orders started simultaneously.

SMIC (00981): The company is the most advanced integrated circuit manufacturing enterprise in mainland China, with the most complete supporting facilities, the largest scale, and multinational operations, providing wafer foundry and technical services for different technology nodes from 0.35 microns to 14 nanometers. Huahong Semiconductor (01347): The company's main customers are domestic design manufacturers. In terms of main products such as power semiconductors and MCU products, the main customers include Xinjie Energy (IGBT and super junction), Starda Semiconductor (IGBT), and Awei Electronics (MCU). The main customers for RF devices are domestic leading design company Zhuosheng Micro. CIS's main customers include Goke Micro and Hawkeye Technology (Vishay).