20240305-招银国际-Technology__AI_Server_and_AI_PC_smartphone_supply_chain_set_to_continue_strong_momentum_into_1H24E_12页_1mb

Technology Sector Update: AI Supply Chain Outlook

Key Findings from Analyst Certification

• Analyst certifies views reflect personal opinions and no compensation ties to report content.
• Analyst confirms no trading activity in covered stocks for 30 days prior and no conflicts.

Sector Update & Ratings

• Technology Sector: OUTPERFORM rating for next 12 months, expected to outperform the broad market benchmark.
• Core Recommendation: Pay attention to AI-driven upcycle in key supply chains, with stronger-than-expected demand for AI servers, PCs, and smartphones.
• Market Momentum: AI adoption is accelerating across enterprises; chip supply constraints easing, set to continue strong performance through H1 2024.

Supply Chain Highlights

• AI Servers: Robust order/backlog/pipeline from major ODMs (Dell, SMCI, Lenovo, HPE), driving revenue growth with key suppliers like Inspur and Huaqin set to benefit.
• AI PCs/Smartphones: Major MWC 2024 launches unveiled new AI features, e.g., Samsung Galaxy S24 (1 million units sold), Honor Magic OS 8.0, Xiaomi's AI imaging engine, OPPO AI smartphone enhancements.
• Edge AI: Expansion from smartphones/PCs to devices like AR/VR, supported by companies such as Apple, Transsion, and Luxshare.

Key Companies and Performance

• Dell: +40% QoQ AI server revenue in FY4Q, strong backlog; SRVC sales growth expected.
• SMCI: Record quarterly delivery; revenue guidance revised upward.
• Lenovo: Secured $1 billion bookings; key AI PC product launches.
• Edge AI Leaders: Xiaomi, Apple, Samsung, OPPO, Meizu driving new AI-enabled hardware innovation.
• Recommended Stocks: Focus on FII, SMCI, Lenovo, Dell, Inspur, Huaqin, Xiaomi, Apple, Transsion, BYDE, and Luxshare for buy potential over 12 months.

Valuation and Risk

• Valuation Table Summary: Provides P/E, P/B, and ROE metrics for companies, highlighting BUY recommendations for high-growth areas; YTD performance indicates volatility.
• Important Disclosures: Investors face risks including performance uncertainty, market fluctuations, and reliance on evolving AI adoption. CMBIGM recommends independent evaluation; liability is limited for reliance on report information.

Rating Summary:

• BUY: Stocks with >15% potential return.
• HOLD: Stocks with return range of +15% to -10%.
• OUTPERFORM: Technology sector expected to outperform benchmarks.