TF Securities: xAI will launch Grok-2 NVIDIA chip in August, and a wave of mass production and delivery may be coming

According to the information from Zhitong Finance and Economics APP, TF Securities released a research report stating that xAI will launch Grok-2 in August, and the mass delivery of NVIDIA chips may be imminent. Overseas AI advancements continue, while domestic efforts are also ongoing. The widespread adoption and vigorous development of AI applications in the future will drive continuous investment in computing power, benefiting AI computing infrastructure. It is important to continue focusing on investment opportunities in core AI targets: overseas core AI directions such as optical modules & optical devices, liquid cooling, and other areas are worth noting and are continuously recommended; in addition, domestic computing power lines such as domestic servers, switches, AIDC, liquid cooling, and other core targets are suggested for active attention.

xAI to launch Grok-2 in August, next-generation Grok-3 training requires 100,000 H100 chips

Elon Musk announced that the large prediction model Grok-2 from his AI startup company xAI will be launched in August, while the next-generation Grok-3 will be trained using 100,000 NVIDIA H100 chips and is expected to be released by the end of the year. With the imminent launch of Grok-2 and the training of Grok-3 already underway, it is evident that there is a continuity in xAI's product release planning. Moreover, the number of AI chips used in Grok-3 training exceeds that of most AI large model training (generally in the tens of thousands).

Impending mass delivery of NVIDIA chips

According to the Taiwan Commercial Times, NVIDIA's AIGPU H200 entered mass production in late Q2 and is expected to see a large volume of deliveries after Q3, with the situation of H200 being in short supply possibly continuing until 2025; B100 already has some visibility, with shipments expected in the first half of next year. On the server side, MoneyDJ reported that NVIDIA's GB200NVL36 will also enter mass production in Q4, with some component manufacturers being asked to complete mass production preparations by Q3.

Overseas AI advancements continue, while domestic efforts are ongoing, and the widespread adoption and vigorous development of AI applications in the future will drive continuous investment in computing power, benefiting AI computing infrastructure. It is important to continue focusing on investment opportunities in core AI targets: overseas core AI directions such as optical modules & optical devices, liquid cooling, and other areas are worth noting and are continuously recommended; in addition, domestic computing power lines such as domestic servers, switches, AIDC, liquid cooling, and other core targets are suggested for active attention. Recent developments in the domestic satellite internet industry show promising progress, and the subsequent industry is expected to be catalyzed. The domestic marine industry is accelerating its recovery, with good opportunities for overseas expansion, actively seizing industrial changes, and core recommendations for leading submarine cable manufacturers. In the medium to long term, TF Securities remains optimistic about the core targets of the three major directions "AI + Overseas Expansion + Satellite".

I. Artificial Intelligence and Digital Economy:

1. Optical modules & optical devices, key recommendations: Zhongjixuchuang, Tianfutongxin, Xinyisheng, Yuanjiekexue (electron joint coverage), Bochuangkeji, Shijiaguangzi, Guangkukeji, Zhongcizidian (new material joint coverage); suggested attention: Taichenguang, Guangxunkexue, Mingpuguangci, Dingtongkeji, Jianqiaokeji, etc

2. Network Equipment Infrastructure: Key recommendations: ZTE Corporation, Tsinghua Unigroup (Computer Joint Coverage); Suggested focus: Fiberhome Telecommunication Tech, Shengkong Communication, Ruijie Networks, Sanwong Communication, Yinghantong, Dongtu Technology, etc.

3. Overseas Expansion Recovery & Concentration of Leading Companies: Key recommendations: Topband Co., Guanghetong, Yilink Networks, Yiwai Communication, Wisewin Information (Mechanical Joint Coverage); Suggested focus: Heertai, Yiyuan Communication, etc.

4. Low Valuation, High Dividend: China Mobile, China Telecom, China Unicom.

5. AIDC & Heat Dissipation: Key recommendations: Runze Technology (Mechanical Joint Coverage), Runjian Co., Kehua Data (Electric-New Joint Coverage), Aofei Data (Computer Joint Coverage). Suggested focus: Inovance, Guanlan Co., Halo New Network, Kechuang Xinyuan, Shenling Environment, Data Harbor, etc.

6. AIGC Applications, suggested focus: Colorful Guofen, Mdream Tech.

II. Satellite Internet & Low-Altitude Economy:

Accelerated construction of defense informatization, rapid development of low-orbit satellites, active promotion of low-altitude economy, key recommendations: Huace Navigation (Computer Joint Coverage), Haige Communication; Suggested focus: Chengchang Technology, Zhenlei Technology, Shenglu Communication, Xinke Mobile, Shanghai Hanxun, Jiayuan Technology, Mengsheng Electronics, China Satcom, Dianke Network Security, Hainengda, etc.

III. Submarine Cables & Intelligent Driving:

1. Submarine Cables: Key recommendations - Hengtong Optic-Electric, Zhongtian Technology, Orient Cable (Electric-New Coverage);

2. Intelligent Driving: Suggested focus: Modules & Terminals (Guanghetong, Megmeet Intelligent, Yiyuan Communication, Yiwai Communication, etc.); Sensors (Hanwei Technology & Sifang Optoelectronics - Mechanical Joint Coverage); Connectors (Yihua Co., Dingtong Technology, etc.); Structural Components & Air Suspension (Ruima Precision) etc.

Risk Warning: AI progress lower than expected, downstream application promotion below expectations, trade frictions, and other risks