This year, NVDA. O stood out in the global stock market.
On June 18th local time, Nvidia closed up 3.51% at $135.58 per share, with a market value of $3335.3 billion, surpassing Apple and Microsoft to become the world's largest technology company.
According to a reporter from Time Weekly, as of the close on June 18th, Nvidia's stock price has accumulated an increase of 173.81% this year; It took about 9 months for its market value to go from $1 trillion to $2 trillion, while it only took about 3 months to go from $2 trillion to $3 trillion.
On June 5th, Nvidia became the world's first semiconductor company with a market value exceeding $3 trillion, and on June 18th, Nvidia topped the US stock market.
However, on the A-share market, the listed companies holding NVIDIA concept stocks are a different scene.
According to Wind, as of the close of June 18, 2024, the Nvidia Industry Chain Index (8841702. WI) has fallen by a cumulative 3.84% for the year. Among them, 26 individual stocks have accumulated a decline within the year, accounting for nearly 60%; Only 18 individual stocks have accumulated an increase within the year.
According to Wind, the concept index was released on May 31, 2023, and includes a total of 44 related companies that have partnerships with Nvidia. At that time, NVIDIA's market value had just exceeded $1 trillion on May 30, 2023, and it had just been promoted to the fifth largest technology company in the world.
Now, a year has passed and Nvidia's market value has reached 3.3 trillion US dollars; As of June 18th, the total market value of 44 A-share companies that have cooperative relationships with Nvidia is only 2.13 trillion yuan, about 0.09 Nvidia, less than one tenth of Nvidia. Only 5 out of these 44 listed companies saw their stock prices rise by over 50% this year, while another 2 companies saw their stock prices plummet.
A reporter from Time Weekly contacted multiple NVIDIA concept stock listed companies, but most of them were unwilling to respond to the cooperation process with NVIDIA, and some expressed that the disclosed content has been responded to on Interactive Easy.
Five companies have seen an increase of over 50% this year
In terms of the increase in NVIDIA concept stocks this year, as of June 18, 2024, a total of 18 companies have seen their stock prices rise. Among them, Industrial Fulian (601138. SH), Shenghong Technology (300476. SZ), and Zhongji Xuchuang (300308. SZ) have accumulated an increase of over 80% this year, reaching 89.29%, 83.43%, and 81.57%, respectively.
Industrial Fulian is a high-end intelligent manufacturing and industrial Internet solution service provider, focusing on the design and system integration of GPU modules, baseplates and back-end AI servers upstream of the AI industry value chain. Benefiting from the growth in demand for AI servers, Industrial Fulian's AI related business volume in 2023 reached nearly 60 billion yuan, accounting for approximately 30% of the total cloud computing revenue, which is higher than the 20% level in 2022.
At the 2022 shareholder meeting, Industrial Fulian revealed that it had partnered with Nvidia to manufacture related AI accelerators and servers. Industrial Fulian stated at the time that the H100 and H800 were assembled by the company. On May 24th, Industrial Fulian replied to investors that it will collaborate with customers to launch a new generation of generative servers in 2024, and there is currently visibility of orders for new products.
Shenghong Technology is a printed circuit board (PCB) manufacturing enterprise, with main products including high-end multi-layer boards, HDI boards, FPC, soft hard combination boards, etc., widely used in new energy, automotive electronics, next-generation communication technology, big data centers, artificial intelligence, industrial interconnection, medical instruments, computers, aerospace and other fields; In 2023, the company achieved a revenue of 7.931 billion yuan, a year-on-year increase of 0.58%, and a net profit attributable to the parent company of 671 million yuan, a year-on-year decrease of 15.09%.
Shenghong Technology replied to investors in September last year, stating that the company has launched multiple AI server related products such as high-end HDI and high-frequency high-speed PCB, which can fully meet the needs of customers for high-end PCB products; The product is ultimately widely used by many well-known domestic and foreign brands such as Amazon, Microsoft, Facebook, Google, Samsung, Intel, Nvidia, AMD, etc. However, due to commercial policies and other restrictions, unlicensed companies are unable to discuss specific customer names and business situations.
According to the 2023 annual report, Shenghong Technology's largest customer sales revenue was 441 million yuan, accounting for 5.91% of the total annual sales.
Zhongji Xuchuang is a high-end optical communication transceiver module manufacturing enterprise, mainly providing high-speed optical modules such as 100G, 200G, 400G, and 800G for cloud data center customers, and providing high-end overall solutions for 5G forward, intermediate, and return optical modules as well as transmission optical modules applied to backbone and core networks for telecommunications equipment supplier customers; In 2023, the company achieved a revenue of 10.718 billion yuan, a year-on-year increase of 11.16%, and a net profit attributable to the parent company of 2.174 billion yuan, a year-on-year increase of 77.58%.
In response to investors in October last year, Zhongji Xuchuang stated that since Q2 of last year, the sharp growth in computing power and bandwidth demand from overseas AI customers has generated a lot of demand and orders for 800G. Recently, Zhongji Xuchuang stated that the industry demand for 800G and 400G optical modules has maintained a rapid year-on-year growth in 2024, and the company has full orders for these two types of products; But the specific customer and order information is a trade secret and cannot be disclosed.
In addition, as of June 18th this year, Shanghai Electric Power Co., Ltd. (002463. SZ) and Tianfu Communication Co., Ltd. (300394. SZ) have risen by more than 50%, with cumulative increases of 76.78% and 53.17% respectively.
Shanghai Electric Power Co., Ltd. is also a PCB manufacturing enterprise, with PCB products focusing on communication equipment, data center infrastructure, and automotive electronics as its core application areas. In 2023, the company's revenue from the enterprise communication market board was approximately 5.87 billion yuan, a year-on-year increase of about 6.82%; The proportion of AI servers and HPC related PCB products in the company's enterprise communication market board revenue has increased from approximately 7.89% in 2022 to approximately 21.13%.
But for the cooperating manufacturers, Shanghai Electric Power Corporation replied to investors on June 7th that due to commercial policy restrictions, it is inconvenient for unlicensed companies to discuss specific manufacturers.
Tianfu Communication and Zhongji Xuchuang both belong to the field of optical communication, specializing in the research and development and production of high-speed optical devices. Benefiting from the constantly developing application scenarios such as AI and artificial intelligence, as well as the rapidly growing market demand, Tianfu Communication achieved a revenue of 1.939 billion yuan, a year-on-year increase of 62.04%, and a net profit attributable to the parent company of 730 million yuan, a year-on-year increase of 81.14% in 2023.
However, regarding whether there is any cooperation with Nvidia, Tianfu Communication has repeatedly stated through the investor interaction platform that it is not convenient to disclose specific customer names that involve trade secrets.
17 companies fell by over 20% this year
From the perspective of the decline in NVIDIA concept stocks this year, as of June 18, 2024, a total of 26 companies have seen their stock prices decline.
Among them, Hengxin Oriental (300081. SZ) and Hongbo Shares (002229. SZ) have accumulated a decline of over 50% this year, reaching 58.53% and 53.42% respectively.
Hengxin Oriental is a company mainly engaged in digital cultural creativity, content production, and technical services. It also provides high-performance computing power leasing, model training, and application services to AI technology enterprises, operators, research institutions, and other enterprises with computing power needs.
In 2023, Hengxin Oriental achieved a revenue of 402 million yuan, a year-on-year decrease of 17.76%; The revenue from computing power system integration and technical services business was 13.2479 million yuan, a year-on-year decrease of 93.90%. Hengxin Oriental stated that with the rapid development and widespread application of artificial intelligence technology, more enterprises are entering the market for computing power system integration and technology services, leading to intensified market competition, squeezing the company's market share, and a decrease in the business volume of computing power system integration and technology services.
On June 3rd, Hengxin Oriental received an inquiry letter from the Shenzhen Stock Exchange regarding the annual report, requesting an explanation of the reasons for the continuous negative net profit attributable to the parent company before and after deduction, whether the company is facing significant operational risks, whether there is significant uncertainty in the company's ability to continue operating, and the basis for judgment. As of the time of publication, Hengxin Oriental has not yet responded to the inquiry letter regarding the annual report.
Hongbo Group's main business is in the printing industry, involving multiple fields such as traditional printing, lottery, and AI. In August 2022, it began to expand its AI computing power and jointly established the Beijing AI Innovation Empowerment Center with Zhongguancun Zhongheng Cultural Technology Innovation Service Alliance and Nvidia. It was once considered a leading stock in the market as a "Nvidia concept stock".
In 2023, the revenue of Hongbo Printing Industry was 556 million yuan, accounting for 89.66% of the operating income, which is the largest source of revenue for the company; The revenue of other industries is only 64067300 yuan. Among them, InBev Technology, as the operating entity of Beijing AI Innovation Empowerment Center, had a revenue of only 21.2846 million yuan and a net profit of -20.2823 million yuan in 2023.
Hongbo Group stated that due to the fact that InBev Technology and Beijing AI Innovation Empowerment Center are still in the initial stage, with the promotion of subsequent expansion plans and R&D plans, the increase in various costs and expenses may pose financial and operational risks to the listed company, which may lead to a decline in the net profit of the company's consolidated financial statements in 2023.
On May 20th, Hongbo Shares received an inquiry letter from the Shenzhen Stock Exchange regarding the annual report, requesting an analysis of whether the market for InBev's computing power business is highly competitive, whether it has the corresponding technology and talent reserves to implement the above-mentioned project, and fully reminding of the relevant risks, taking into account industry competition and comparable company situations.
On June 7th, Hongbo Group replied, "At present, various businesses of InBev Digital Science and Technology are operating normally, but due to its short establishment time, various businesses are still in the initial stage, and related technology and talent reserves are still being accumulated. It is still uncertain whether InBev Digital Science and Technology has the corresponding technology and talent reserves to successfully implement the above-mentioned projects."
Zhang Xiaorong, President of the Deep Science and Technology Research Institute, told Time Weekly that the threshold for computing power business is not low and requires strong technical support, sufficient capital investment, market insight, and compliant operational strategies. Cross border layout of computing power business by listed companies can bring new growth opportunities, but at the same time, they also face challenges in technology, funding, market, and regulations.
In addition, 15 companies have experienced a decline of over 20% as of June 18th this year. Among them, Zhongfutong (300560. SZ), Aotuo Electronics (002587. SZ), and Qiming Xingchen (002439. SZ) have accumulated a decline of over 30% this year, reaching 36.48%, 32.66%, and 31.44% respectively.
On June 4, Zhongfutong said through the investor interaction platform that its holding subsidiary, InBeda, is a service provider specializing in the R&D and design of edge computing and intelligent terminals as well as AI intelligent visual inspection technology solutions. Nvidia is one of InBeda's upstream partners.
In 2023, Zhongfu Tong's revenue was 1.287 billion yuan, a year-on-year increase of 21.87%; Among them, the operating revenue of the edge computing industry was only 19.2189 million yuan, accounting for 1.49% of the operating revenue.
Aotuo Electronics is an intelligent video solution provider with comprehensive capabilities of hardware, software, and content. On June 7th, Alto Electronics announced through an investor interaction platform that the company provides NVIDIA with XR virtual shooting solutions and related products and services, and has completed delivery in 2023. However, this project does not account for a significant proportion of the company's overall revenue.
According to the 2023 annual report, Alto Electronics has undertaken a total of 23 XR/VP virtual studio projects this year. As of now, it has undertaken a total of 67 XR/VP virtual studio projects worldwide and applied them to multiple well-known domestic and foreign film and television production companies and Fortune 500 companies, including Nvidia, Tencent, Microsoft, Amazon, China Film Group, Toei Japan, and some Hollywood film and television production companies.
However, although Qiming Star has also been included in the Nvidia Industry Chain Index as a constituent stock by Wind, it has publicly announced on the investor interaction platform that it has not cooperated with Nvidia. Qiming Xingchen said that the company, as a professional subsidiary of China Mobile dedicated to network information security, and together with China Mobile, actively deployed AI+security, cloud related network security, data element security, identity trust and password application security, industrial Internet security and other emerging security fields.