SMM News, June 26: As generative AI technology matures and data center construction accelerates, demand for copper cables in short-distance high-speed interconnection scenarios has surged. The Ministry of Industry and Information Technology (MIIT) recently issued the "Action Plan for Computing Power Interconnection and Interoperability, " emphasizing efficient infrastructure connectivity. High-speed copper cables, crucial for short-distance data center transmission, are anticipated to receive focused policy support. Nvidia reclaimed its position as the world’s most valuable company on Wednesday, fueled by strong market optimism around AI. Wall Street analysts foresee Nvidia riding an “AI golden wave, ” bolstered by Loop Capital’s target price hike from $175 to $250 (+40%) and optimism linked to Micron Technology’s robust chip performance, vital for Nvidia’s AI accelerators. This sentiment has also bolstered chip stocks and copper cable interconnection-related shares; as of 13:14 on June 26, the high-speed copper cable sector rose 1. 34%, with Zhaolong Interconnection up 7. 31%, followed by notable gains from Huafeng Technology, Shaanxi Huada, Kingsignal Technology, and Zhongyuan New Materials. News Highlights: - MIIT’s May 30 “Action Plan for Computing Power Interconnection and Interoperability” outlines standards to unify computing power interconnection, covering communication networks, resource integration, data flow, and application adaptation. It targets AI and scientific computing, while promoting global standard innovation. - Nvidia’s stock hit an all-time high as Loop Capital boosted its price target to $250, citing sustained AI trends potentially elevating Nvidia’s market cap to $6 trillion (65% above current). Micron’s strong performance and AI accelerator chip supply further support Nvidia's growth momentum. - Zhaolong Interconnect, with over 30 years in digital communication cables, confirmed its high-speed products meet data center and AI computing centers’ demands for high bandwidth and low latency, with extensive applications in cloud computing.

The company plans to expand R&D and market presence as AI advances. - Far East Smarter Energy focuses on intelligent cable networks, energy storage, and smart airports, embracing AI and digital intelligence in sectors like new energy, cloud computing, and robotics. - Kingsignal, a leader in communication industry interconnect products, acknowledged high domestic AI server DAC cable demand but did not disclose specific clients due to confidentiality, though Huawei and Nvidia collaborations are queried. Industry Insights: - Soochow Securities highlights increasing demand for AI ASICs driving copper connection markets in data centers. Major CSPs like AWS, Microsoft, Google, and X. AI are adopting Active Ethernet Cables (AEC), expected to reach nearly 25 million chip shipments by 2026. Domestic giant companies Alibaba and ByteDance are also exploring AEC adoption. - Shanxi Securities projects satellite internet and 5G ground infrastructure will accelerate, benefiting related industries. AMD’s Mi400 Helios cabinet design points to massive demand—over 10, 000 224G copper cables and high-density connectors—reflecting broader trends of doubling bandwidth and super-node GPU designs in 2026-27, boosting copper cable and optical module markets. - CITIC Securities notes growing AI training and inference demands and evolving computational infrastructure emphasizing system-level solutions to overcome hardware limits. Domestic GPU companies aim to compete globally with higher resource density infrastructure. Focus areas include NVIDIA NVL72 and Huawei’s CloudMatrix384 super node products. - Western Securities states that high-speed copper cables improve data transmission speed, reliability, heat dissipation, and cost efficiency in data centers, especially for server-switch connections. - Everbright Securities forecasts broad opportunities driven by AI data center expansion, highlighting entire industry chains—from materials to system integration. - Haitong Securities points out copper cables’ important role in short-distance data center interconnects, with Active Ethernet Cables offering lighter weight and better cost-performance than alternatives for future AI data centers. - Orient Securities emphasizes rising domestic capability and production of high-speed copper cables for AI computational power amid growing demand driven by generative AI and data volume. - Huafu Securities projects active copper cable chip markets to grow from $100 million in 2023 to over $1 billion by 2027, with over 70% compound annual growth. - GF Securities forecasts rapid AEC demand growth aligned with increasing self-developed ASIC adoption, with North America’s market reaching $2 billion by 2025 and domestic markets expanding substantially by 2026 alongside rising global penetration. In summary, the combination of advancing AI technologies, expanding data centers, and strategic governmental policies strongly supports the growth and innovation of the high-speed copper cable interconnection sector, driving significant market and technological developments worldwide and domestically.