galaxy securities released a research report saying that Avida's three chips have strong game and generative AI performance, and have three major characteristics of embedded hybrid AI computing power, innovation/enhancement of AI experience and equipment experience upgrade, which are expected to further accelerate the development of the industry. AIPC is expected to become the best carrier for terminal AI landing. The bank believes that with Nvidia and other technology giants continue to add code, 2024 will usher in the first year of AIPC, overlay PC replacement demand, AIPC is expected to accelerate penetration, the relevant beneficiary areas include chip manufacturers, ODM manufacturers, PC peripheral manufacturers.

It is recommended to pay attention to listed companies in the industrial chain: Lenovo Group (00992), Longxin Zhongke (688047.SH), Haiguang Information (688041.SH), Zhiwei Intelligence (001339.SZ), Lei Bai Technology (002577.SZ), Great Wall of China (000066.SZ), Zhidi Technology (301503.SZ), etc.

event: in the early morning of January 9, Beijing time, Avida announced at the international consumer electronics show CES(ConsumerElectronicsShow, consumer electronics show) that it would introduce three new desktop graphics chips with additional components, which would enable users to make better use of artificial intelligence on personal computers without relying on remote services accessed via the internet. The company also claimed to be in a leading position in the AIPC competition. As a result, Nvidia shares surged 6.34 per cent to a new high.

Galaxy Securities views are as follows:

The performance of the GeForceRTX40SUPER series AI has been greatly improved, and the AIPC era has accelerated.

RTX40SUPER series chips are RTX4080SUPER, RTX4070TiSUPER and RTX4070SUPER graphics cards, all of which adopt 4nm technology and adopt new AdaLovelace architecture, and will be sold in succession in mid-to-late January. This series is a new GPU chip specially introduced by Avida for AIPC equipment. Compared with the new products of Intel and AMD chips, this graphics card is the best engine to drive new notebook computers and desktop computers, and AI performance is improved by more than 170. The bank believes that the three chips launched by Nvidia this time have strong game and generative AI performance, and have three major characteristics of embedded hybrid AI computing power, innovation/enhancement of AI experience and equipment experience upgrade, which are expected to further accelerate the development of the industry, and AIPC is expected to become the optimal carrier for terminal AI landing.

2024 ushered in the first year of AIPC, ODM manufacturers are expected to be the first to benefit.

Nvidia said that at present, ASUS, MSI, Lenovo, HP, Samsung and other OEM terminal manufacturers will provide RTX4080SUPER-based AIPC equipment. Canalys pointed out that AIPC will account for nearly 20% of PCs shipped in 2024, and 60% of AIPC shipments will be applied to commercial fields by 2027. The bank believes that with the release of Avida's three consumer chips and Intel Core Ultra processor, 2024 officially entered the first year of AIPC. Avida GeForceRTX40SUPER series has stronger end-side AI capability and will support relevant ecological cooperation terminal manufacturers. The demand for downstream terminals will increase in the future, and relevant ODM manufacturers are expected to take the lead in benefiting.

driving generative AI to enhance the PC experience, PC peripherals ushered in a new round of rising cycle.

Nvidia said that GeForceRTX40SUPER graphics cards support more than 500 RTX games and applications and will prepare users for the wave of generative AI applications on PC. The bank believes that with the introduction of generative AI into computer applications, it has the following advantages: 1) it can run compressed and superior personal models; 2) Support heterogeneous computing power, form a personal knowledge base, and provide corpus for personal models; 3) Low delay and smoother interaction; 4) More reliable security and privacy. In the future, AIPC will gradually become the main mobile terminal of edge computing power, giving rise to an explosion of demand for terminal AIPC, driving a new round of rising cycle of PC peripherals.

Risk Alert: Risk of less than expected progress in technology research and development; supply chain risk; risk of less than expected policy advancement; risk of less than expected consumer demand; risk of increased competition in the industry.