On June 5th, local time, an electrifying announcement rippled through the financial world, especially within the technology sectorNvidia's stock flashing a robust growth of over 5% at the close of trading caught everyone's eyes, elevating its price to a stunning $1,224.4 per shareThis remarkable rise propelled Nvidia's market capitalization beyond the staggering $3 trillion mark, allowing it to surpass Apple and reclaim the title of the second-largest company by market value on the U.Sstock exchangeIn light of this news, a swarm of Nvidia-related stocks experienced a bullish opening on the A-share market, signifying international ripple effects of Nvidia's stock performance.

The morning saw Industrial Fulian taking the lead, showcasing an impressive surge that saw its shares hit the daily limit, firmly capturing the market's attention

Not far behind, Annuqi also demonstrated a strong performance with a price increase of over 6%. Inspur Information followed closely, witnessing its shares climb more than 4%. However, among these stocks, Zhongji Xuchuang stood out exceptionally, with an impressive jump of over 8%. Other players like Helin Weina and Boke New Material also reported gains exceeding 6% and 2% respectivelyNevertheless, as trading progressed, several stocks showed signs of retreat; by the time of reporting, Helin Weina's shares had dipped by 0.8%, and Boke New Material followed suit with a slight decrease of 0.31%.

A significant player among these concept stocks is Industrial Fulian, which is intricately linked with Foxconn Group and serves as a crucial supplier for NvidiaA retrospective glance at the previous year's fourth quarter reveals Industrial Fulian had made headlines by successfully securing its first orders for Nvidia's HGX (High-Performance Computing and AI Accelerator Platform) AI server chipboards

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Combined with prior orders for DGX (Large Memory AI Supercomputer) AI server chipboards, it swiftly established itself as the largest supplier of Nvidia's AI server chipboards, commanding an astounding market share of over 50%. The company has made significant strides in mass production of AI servers, with its Nvidia H100 and H800 high-performance AI servers gaining considerable traction in the marketplaceFinancially, the first quarter of this year yielded prosperous results for Industrial Fulian, posting revenue figures of 118.688 billion yuan, marking a year-on-year growth of 12.09%, while net profit reached an impressive 4.18 billion yuan, reflecting an increase of 33.77%. In a quarterly performance briefing, Chairman Zheng Hongmeng hinted that the company’s AI-related business volume is approaching 60 billion yuan, accounting for around 30% of their overall cloud computing revenue

Furthermore, they anticipate a substantial increase, projecting that by 2024, AI contributions will rise to 40% of their cloud revenue, with global market share in AI servers potentially reaching 40% as well.

Inspur Information also holds a vital position in the server sector and has recently come under the scrutiny of investors due to its notable performanceFor 2023, Inspur’s revenue stood at 65.867 billion yuan but showed a year-on-year decline of 5.41%, with net profit at 1.783 billion yuan, down 14.54%. Nonetheless, this downward trend saw a significant turnaround in the first quarter, where both revenue and net profit surged by 85.32% and 64.39% year-on-year, respectively, indicating a resurgence in demand within the server market.

The server market's overall dynamic forecasts an intriguing year ahead

According to TrendForce, Foxconn is predicted to lead among OEM (Original Equipment Manufacturer) suppliers with an estimated annual shipment growth of 5% to 7%, amidst an overall 6% decline in global server shipments for 2023, but a projected 2% rebound in 2024. The ongoing fervor in AI servers, especially driven by volume orders from North American cloud data centers, is expected to shape these trends positively.

Meanwhile, Zhongji Xuchuang has garnered significant attention within the data center optics module supply sector, especially given the burgeoning demand for optics modules necessary for training AI large modelsLast October, company executives expressed optimism during a market survey, predicting a healthy trend of sequential growth in shipments of 800G/400G optical modules across several quarters, particularly expecting a prominent increase in capacity and delivery following the first quarter of 2024.

Formerly a supplier of textile dyes, Annuqi has made strategic investments, recently acquiring a 100% stake in Shanghai Geng Cong Technology for 100 million yuan, a firm with expertise in computing power leasing services

Recently, investors raised queries regarding Geng Cong's involvement as a member of Nvidia’s startup accelerator programAnnuqi has responded, clarifying that Nvidia extends a myriad of valuable resources to member companies, including technical supportHowever, rumors abound, suggesting that Annuqi may be on the verge of signing lucrative contracts with Nvidia, including acquiring A100 computing power cards at significant discountsAnnuqi has swiftly squashed these rumors via their investor communication platform, asserting there were no such billion-dollar deals in place.

Another noteworthy entity is Helin Weina, which serves as a supplier for Nvidia by providing mid-range and high-end chip testing probesBoke New Material, on the other hand, has also indicated through investor communications that its chip inductive products are utilized within offerings from several global leading GPU manufacturers, including applications within Nvidia's own product lines