Text: Yang Jianyong.
In the past year, driven by ChatGPT, artificial intelligence has entered the era of large models. This year, OpenAI once again released the Wensheng ** model Sora. Under the influence of SORA, the concept of artificial intelligence is alive again. It is worth noting that generative AI and large models are in full swing around the world, and the demand for computing power will also increase significantly. Nvidia is undoubtedly one of the biggest winners of this wave.
Following the **3 times in 2023, Nvidia continues to rise by 72% this year, with a market value of 213 trillion US dollars (about 153 trillion yuan). Among them, February 22 recorded the largest one-day market increase in market history, and the market value increased by $277 billion overnight. It is sought after in the capital market mainly because investors are optimistic about the business prospects of AI.
In the domestic market, as the leader in AI computing power, the Industrial Fortune Federation has also received a significant increase, with a current market value of 466 billion yuan, a cumulative increase of 55% this year.
On the news side, Apple has given up building cars and then specialized in the development of generative AI, and will invest a lot of money in artificial intelligence, showing that Apple is embracing the generative AI boom set off by the technology industry. As an important leader in Apple's industry chain, it is reported that the AI servers shipped by Hon Hai Group to Apple have been in the testing stage.
Of course, Hon Hai Group does not comment on individual customers and products. The Industrial Fortune Union is a Hon Hai company, which has performed well in the capital market. Prior to this, FII believes that the vigorous development of ChatGPT is expected to drive the increase in Capex (capital expenditure), especially related to AI computing power. These trends will play a positive role in promoting FII.
You must know that the current growth of global computing power demand is entering an explosive stage, and breakthroughs in the application of new technologies such as artificial intelligence are inseparable from strong computing power support.
A few days ago, FII told investors that according to TrendForce data, AI servers will usher in rapid growth in 2023, with an increase of 38%. From 2024 to 2026, it is expected to maintain a high annual growth rate of 20%-30%. Among them, in the first three quarters of 2023, the overall AI server revenue of FII showed double-digit high growth year-on-year, and the GenAI (CPU + GPU) server revenue doubled in the first three quarters, and the revenue of GenAI servers showed multiple growth for three consecutive quarters.
Since the beginning of 2022, FII GenAI's server revenue has shown a quarter-by-quarter heating trend, and the proportion of GenAI's server revenue (accounting for the overall AI server) has continued to rise. FII believes that the development trend of GenAI remains unchanged, and in the future, it will continue to increase investment in AI server research and development, continuously optimize product structure, and lead the development opportunities of the AI track.
It should be pointed out that AI servers have benefited from the trend of AI data center AI, and the revenue of AI servers and GenAI servers has grown rapidly. At present, FII's existing customers are the world's leading cloud service providers and brand customers, and will continue to serve these leading customers in 2024. FII's AI server has been applied to ChatGPT, and the proportion and R&D speed of AI servers and high-performance computing (HPC) products are accelerating at the same time.
At the same time, in view of the strong market demand, we are currently continuing to expand our global production capacity in response to and meet the needs of customers for global delivery. At the same time, we are investing in a high degree of automation and robotics in our global factories to maximize production efficiency.
In the list of the latest batch of "lighthouse factories" announced by WEF, there is the Nanqing factory under the Industrial Fortune Federation. It was selected as the world's first AI server "lighthouse" by introducing a large number of AI technologies and greatly improving production efficiency.
According to the WEF evaluation, the basic AI model has brought about a first-class increase in the demand for computing power, as well as the requirements for higher efficiency, quality, and iteration speed of AI servers. By introducing AI use cases in areas such as order**, warehouse and production scheduling, product design, and quality and assembly testing, FII Nanqing Plant has achieved a 73% increase in production efficiency, a 97% reduction in product defect rates, a 21% reduction in lead times, and a 39% reduction in unit manufacturing costs.
Finally, generative AI has stepped onto the stage of the times, and the hundreds of millions of parameters of large models consume huge computing power. As a basic product of computing power, the demand for AI servers has been further released.
In the report "The Great Era of Computing Power, a Panorama of the AI Computing Industry Chain", China Securities Construction Investment mentioned that the penetration rate of AI servers has increased rapidly, and it believes that the global AI server market will maintain rapid growth in the next three years. The demand for computing power for large models will also increase significantly, which will also open up the growth space of AI server manufacturers.